Perenti will sell its geochemical and precious metal analyses subsidiary to competitor ALS for $43.6 million as part of a reassessment of its operations.
The decision to sell the assay lab business comes nearly 11 years after the business plan for MinAnalytical was first hatched at a Diggers and Dealers conference in Kalgoorlie, when larger international companies dominated the sector.
A decade later and Perenti, formerly known as Ausdrill, has decided to sell the business to one of those competitors.
Perenti will retain 8 per cent equity in photonassay business Chrysos Corporation however.
Mr Norwell said he was was pleased the business had entered the agreement.
“MinAnalytical, and the significant new technology offering of the Chrysos PhotonAssay machines, is a natural fit for the ALS portfolio and will benefit greatly from the synergies and economies of scale that ALS can offer,” Mr Norwell said in a statement.
“We will continue to evaluate and progress a number of capital management initiatives designed to generate cash flow, streamline our portfolio, liberate cash, sustainably reduce our leverage ratio and efficiently allocate capital across our business.”
The transaction is set to be completed before December 31 this year.
Perenti shares are up 1.87 per cent to trade at 82 cents.
ALS shares are down 0.65 per cent to trade at $12.98.