MDS Announces Agreement to Sell Central Labs Operation to Czura Thornton
October 09 2009 - 7:00AM
PR Newswire (US)
TORONTO, Oct. 9 /PRNewswire-FirstCall/ -- MDS Inc. (TSX: MDS; NYSE:
MDZ), a leading provider of products and services to the global
life sciences markets, today announced that it has signed an
agreement to sell its Central Labs operation, which conducts
analysis of samples from late-stage clinical trials to Czura
Thornton, a private investment group based in Jersey, Channel
Islands. MDS will receive approximately $8 million in proceeds from
the transaction, including certain transition services. The
purchase price may be increased by up to $4 million if certain
performance thresholds are attained by Central Labs following the
closing. The transaction is subject to customary post-closing
contingencies and adjustments. "The divestiture of our Central Labs
operation is another milestone in the Company's repositioning
strategy," said Stephen P. DeFalco, President and Chief Executive
Officer of MDS Inc. Central Labs Under the terms of the agreement,
Czura Thornton would acquire MDS's Central Labs operation, which
has more than 600 employees at six sites in Europe, North America
and Asia. Central Labs provides a comprehensive range of late-stage
laboratory services to global clients, including standardized
assays, integrated data management, international laboratory study
co-ordination and site support. Its proprietary, industry-leading
Apollo CLPM(TM) (Central Lab Protocol Management) system offers
clients real-time access to study data from around the world. "We
intend to build and strengthen the Central Lab business," said
Czura Thornton co-founder Nick Thornton. "We believe the business's
international platform, world-class facilities and highly skilled
people will enhance our strong client relationships. While the
Central Lab business will co-operate closely with Chiltern, our
wholly owned CRO, it will be run separately." The transaction is
expected to close in the fourth calendar quarter of 2009, and is
subject to customary approvals and closing conditions. In addition,
the sale of the Central Labs operations in France and Germany is
subject to review and consultation with the applicable Works
Councils in accordance with labour laws in those countries. MDS
Strategic Repositioning On September 2, 2009, MDS announced that it
had entered into an agreement to sell its MDS Analytical
Technologies business, a leading global supplier of drug discovery
and life sciences research tools, to Danaher Corporation and to
return a substantial portion of the sale proceeds to shareholders.
The Company also announced that it intends to sell its MDS Pharma
Services business, a leading provider of innovative drug discovery
and early-stage development solutions for pharmaceutical and
biotechnology companies. Assuming completion of these proposed
sales, MDS will remain a publicly traded entity consisting solely
of its MDS Nordion business. There can be no assurance that MDS
will complete a transaction involving MDS Pharma Services. If MDS
determines that there is not an acceptable transaction, it intends
to retain and invest in building the business. Caution Concerning
Forward-Looking Statements This document contains forward-looking
statements. Some forward-looking statements may be identified by
words like "believes", "expects", "anticipates", "plans",
"intends", "indicates" or similar expressions. The statements are
not a guarantee of future performance and are inherently subject to
risks and uncertainties. MDS's actual results could differ
materially from those expressed in the forward-looking statements
due to these risks and a number of other factors, including, but
not limited to, successful completion of the aforementioned
divestiture, successful implementation of structural changes,
including restructuring plans and acquisitions, technical or
manufacturing or distribution issues, the competitive environment
for MDS's products and services, the degree of market penetration
of its products and services, the ability to secure a reliable
supply of raw materials, the impact of our clients' exercising
rights to delay or cancel certain contracts, the strength of the
global economy, the stability of global equity markets, the
availability and cost of financing, the impact of the movement of
the U.S. dollar relative to other currencies, particularly the
Canadian dollar and the euro, uncertainties associated with
critical accounting assumptions and estimates, and other factors
set forth in reports and other documents filed by MDS with Canadian
and U.S. securities regulatory authorities from time to time,
including MDS's quarterly and annual MD&A, Annual Information
Form, and Annual Report on Form 40-F for the fiscal year ended
October 31, 2008 filed with the U.S. Securities & Exchange
Commission. About Czura Thornton Czura Thornton is a private
investment firm that has extensive experience in international
business, contract research and medical laboratories. The firm is
invested in the life sciences, property and transportation sectors.
Further information can be found at http://www.czurathornton.com/.
About MDS MDS Inc. (TSX: MDS; NYSE: MDZ) is a global life sciences
company that provides market-leading products and services that our
customers need for the development of drugs and diagnosis and
treatment of disease. We are a leading global provider of
pharmaceutical contract research, medical isotopes for molecular
imaging, radiotherapeutics, and analytical instruments. MDS has
more than 4,200 highly skilled people in 13 countries. Find out
more at http://www.mdsinc.com/ or by calling 1-888-MDS-7222, 24
hours a day. DATASOURCE: MDS Inc. CONTACT: MEDIA: Paul Stulberg,
(905) 267-4222, ext. 32265, ; INVESTORS: Peter Dans, (905)
267-4230,
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