MDS Announces Agreement to Sell Central Labs Operation to Czura Thornton
MDS will receive approximately
"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.
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
"We intend to build and strengthen the Central Lab business," said Czura Thornton co-founder
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
MDS Strategic Repositioning
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
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 www.czurathornton.com.
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 www.mdsinc.com or by calling 1-888-MDS-7222, 24 hours a day.For further information: MEDIA: Paul Stulberg, (905) 267-4222, ext. 32265, firstname.lastname@example.org; INVESTORS: Peter Dans, (905) 267-4230, email@example.com