MDS Inc. Completes Divestiture of MDS Analytical Technologies
February 01 2010 - 8:00AM
PR Newswire (US)
TORONTO, Feb. 1 /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 completed the
divestiture of its MDS Analytical Technologies business to Danaher
Corporation (NYSE:DHR) for $650 million in cash. "The divestiture
of the MDS Analytical Technologies business marks a significant
milestone in the Company's repositioning strategy and enables a
substantial return of proceeds from the sale to shareholders," said
Steve West, Chief Executive Officer, MDS Inc. Proceeds from the
Sale MDS intends to return approximately $400 million to $450
million of the sale proceeds to shareholders by way of a share
buyback through a Substantial Issuer Bid. The Company currently
expects to initiate a Substantial Issuer Bid within the next 30
days. Changes to Capital Structure Concurrent with the closing of
the sale, MDS has initiated actions to terminate its undrawn C$500
million revolving credit facility and to retire all outstanding
Senior Unsecured Notes at a cost of approximately $223 million
including principal, interest and make whole payments by February
3, 2010. The Company also deposited approximately $20 million in
cash collateral to support existing letters of credit. MDS
Strategic Repositioning 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.
About MDS MDS Inc. (TSX: MDS; NYSE: MDZ) is a global life sciences
company that provides market-leading products and services that
customers need for the development of drugs and the diagnosis and
treatment of disease. MDS Inc. is a leading global provider of
innovative technologies for use in medical imaging and
radiotherapeutics, sterilization, and pharmaceutical contract
research. MDS has more than 2,400 highly skilled people in nine
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: Janet Ko, (905) 267-4226, ; INVESTORS: Catherine Love, (905)
267-4230,
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