TORONTO, Sept. 2 /CNW/ - MDS Inc. (TSX: MDS; NYSE: MDZ), a leading
provider of products and services to the global life sciences markets earlier
today disclosed that it had entered into an agreement to sell its MDS
Analytical Technologies business to Danaher Corporation (NYSE: DHR) for $650
million in cash. Further to this announcement, ValueAct Capital and Enterprise
Capital Management Inc., two of the Company's largest shareholders, who
collectively own approximately 23% of the Company's outstanding common shares,
have each entered into an agreement with Danaher pursuant to which they have
agreed to vote their common shares in favor of the transaction. These
agreements are subject to the ability of the shareholders to change their vote
if the Board changes its recommendation with respect to the transaction.
The completion of the sale of the MDS Analytical Technologies business is
subject to, among various other conditions, shareholder approval. A Special
Meeting of Shareholders is expected to be held in October 2009. The sale must
be approved by two-thirds of the votes cast at the meeting.
MDS anticipates that a management proxy circular for the shareholder
meeting will be mailed to shareholders later this month and will be available
at www.sedar.com, www.sec.gov/edgar.shtml and www.mdsinc.com.
About MDS Inc.
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 diagnosis and treatment of disease. MDS Inc. is 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.
Caution Concerning Forward-Looking Statements
This document contains forward-looking statements, including statements
with respect to the proposed sale of the MDS Analytical Technologies business,
the proposed use of proceeds from the sale, the strategy of the remaining
business and the Company's intention to sell other assets of the Company. Some
forward-looking statements may be identified by words like "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
implementation of structural changes, including restructuring plans,
acquisitions and divestitures including the proposed sale of the MDS
Analytical Technologies business, 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.
For further information:
For further information: MEDIA: Janet Ko, (905) 267-4226,
firstname.lastname@example.org; INVESTORS: Kim Lee, (905) 267-4230, email@example.com