WESSLING Group finds strategic partner in ALS Limited
Wessling is one of the last remaining, large independent and family-owned providers of laboratory testing services and engineering services in Europe. Founded in 1983, the Group is still family-owned and managed. Wessling offers high-quality testing services in the environmental, food, consumer products and pharmaceutical sectors as well as engineering consulting services. The transaction has been signed and is still subject to necessary regulatory approvals.
Excerpt of the official ASX release of ALS Limited as per 26 March 2024 (Wessling related part only):
ALS Limited (ASX: ALQ) has today announced the acquisition of Europe-based Wessling Holding GmbH & Co. KG (Wessling), supporting ALS’ strategic growth agenda in its Life Sciences portfolio, more specifically, the Environmental business.
The acquisition of Wessling is subject to approval from European authorities, which is expected to take 45-60 days, and will likely be effective from June 2024. ALS has integration plans progressed for employees, clients, and stakeholders of both businesses.
ALS CEO & Managing Director, Malcolm Deane, commented: “This acquisition demonstrates our ability to execute on transactions within our strategic growth framework, with a focus on expanding both geographic reach and service offerings for existing and new clients. Wessling provides an immediate pathway and operational footprint into the large German and French environmental, food and pharmaceutical markets, which will complement our existing reach in Europe.”
Wessling is expected to deliver project returns of mid-teens over the medium to longer term. Operational improvements, sales growth and efficiencies unlocked within the ALS portfolio will improve underlying margins, trending upwards toward the Life Sciences portfolio average.”
Wessling
Wessling, which generated revenues of ~EUR 98 million in calendar 2023, provides environmental, food and pharmaceutical testing across 22 locations in Europe. Wessling has ~1,200 employees. The acquisition provides a unique opportunity for ALS to build a sizeable presence in Europe’s largest testing, inspection and certification (TIC) markets, expanding ALS’ geographic reach and service offering into key regions, such as Germany, France and Switzerland, that previously have not been captured by ALS. Wessling is expected to benefit from integration into the ALS operating model, with operational improvements, sales growth and efficiencies to materialise over the short to medium term.
About ALS Limited
A global leader in testing, ALS provides comprehensive testing solutions to clients in a wide range of industries around the world. Using state-of-the-art technologies and innovative methodologies, our dedicated international teams deliver the highest-quality testing services and personalized solutions supported by local expertise. We help our clients leverage the power of data-driven insights for a safer and healthier world.
“We are glad that we have been able to find the best new owner for our company and our employees. Wessling will be better positioned for future growth and investment requirements. We are intrigued by the very similar cultures and values ALS and Wessling are dedicated to. A big thank you to our advisors for their unresting support,” said Anna Weßling, CEO of Wessling Holding GmbH & Co. KG.
Dr. Ralf Nowak, Managing Partner at Livingstone, commented: “We are delighted being able to support the company and the shareholders in this complex transaction, in which ALS turned out as the best buyer in a highly competitive process. We are convinced that we were able to achieve a win-win-situation for all parties.”
