MDS to Sell Diagnostics Business to Borealis Infrastructure Management in $1.3B Transaction

Important Milestone in Executing Global Life Sciences Strategy

09-Oct-2006

MDS Inc. announced it signed an agreement to sell its Canadian laboratory services business, MDS Diagnostic Services, to Borealis Infrastructure Management Inc. in a CAD $1.325 billion transaction. This strategic sale is designed to shift the company's business focus to the life sciences market.

Under this agreement, Borealis Infrastructure Management, an investment entity of Ontario Municipal Employees Retirement System (OMERS), will acquire MDS Diagnostic Services, provider of laboratory services, with annualized revenues of CAD$335 million and over 2,900 employees.

From the total transaction price of CAD$1.325 billion, MDS expects to realize net proceeds of approximately CAD$1.052 billion, after provision for taxes, expenses and amounts attributable to minority interests. A portion of the purchase price may be retained for up to 18 months, contingent on the satisfaction of specific transition obligations of MDS. This transaction is subject to conditions and customary approvals, including regulatory consents and approval from the shareholders of LPBP Inc., the limited partner of the entity that owns the assets used in the Ontario Laboratory Business. The transaction is expected to close by the end of January 2007.

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Topic world Diagnostics

Diagnostics is at the heart of modern medicine and forms a crucial interface between research and patient care in the biotech and pharmaceutical industries. It not only enables early detection and monitoring of disease, but also plays a central role in individualized medicine by enabling targeted therapies based on an individual's genetic and molecular signature.

10+ products
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View topic world

Topic world Diagnostics

Diagnostics is at the heart of modern medicine and forms a crucial interface between research and patient care in the biotech and pharmaceutical industries. It not only enables early detection and monitoring of disease, but also plays a central role in individualized medicine by enabling targeted therapies based on an individual's genetic and molecular signature.

10+ products
4 whitepaper
10+ brochures