MDS Inc. Announces Shareholder Approval of Sale of MDS Analytical Technologies
October 20 2009 - 5:00PM
PR Newswire (US)
TORONTO, Oct. 20 /PRNewswire-FirstCall/ -- MDS Inc. (TSX: MDS;
NYSE: MDZ), a leading provider of products and services to the
global life sciences markets, today announced that Company
shareholders have approved the sale of its MDS Analytical
Technologies business, a leading global supplier of drug discovery
and life sciences research tools, to Danaher Corporation (NYSE:DHR)
for $650 million in cash. A Special Meeting of Shareholders was
held on October 20, 2009, and in excess of 99 % of the Common
Shares voted were in favour of the sale to Danaher. "The MDS Board
of Directors is pleased that shareholders have voted to support the
divestiture of the MDS Analytical Technologies business," said
James S. A. MacDonald, Chairman of the MDS Inc.'s Board of
Directors. "Subject to the completion of sale of MDS Analytical
Technologies, the Company currently intends to return approximately
$400 million to $450 million of sale proceeds to shareholders by
way of a share buyback through a Substantial Issuer Bid." The
completion of the proposed sale of MDS Analytical Technologies,
which was originally announced on September 2, 2009, remains
subject to receipt of regulatory approvals and customary closing
conditions. "We continue to believe that the repositioning of MDS
will unlock the value of our business in the near-term and provide
greater opportunities for each business going forward," said
Stephen P. DeFalco, President and Chief Executive Officer, MDS Inc.
"Shareholder approval of the sale of MDS Analytical Technologies
marks another important milestone in our repositioning strategy."
MDS Inc. Strategic Repositioning In addition to the sale of MDS
Analytical Technologies, the Company also announced on September 2,
2009, 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. Upon completion of these transactions, the Company will
be focused solely on its MDS Nordion business, which is a leading
provider of medical isotopes for molecular and diagnostic imaging,
radiotherapeutics and sterilization technologies. Additional
background materials pertaining to the new strategic direction for
MDS Inc. can be found on MDS Inc.'s Website at
http://www.mdsinc.com/strategic_repositioning_of_mds/index.asp.
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. 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. 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. DATASOURCE: MDS Inc. CONTACT:
MEDIA: Janet Ko, (905) 267-4226, ; INVESTORS: Peter Dans, (905)
267-4230,
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