LifeLabs Medical Laboratory Services Inc has completed its previously-announced purchase of CML HealthCare Inc (TSX:CLC), a Mississauga, Ontario-based diagnostic lab and medical imaging provider, for $10.75 per share, or around $1.2 billion. This is LifeLabs second acquisition in 2013. In April, the Toronto-based company purchased B.C. Biomedical Laboratories Ltd of Vancouver. LifeLabs, formerly MDS Diagnostic Services, was acquired for $1.3 billion by Borealis Infrastructure, the investment arm of the Ontario Municipal Employees Retirement System, in 2007.
LifeLabs Medical Laboratory Services Completes Purchase of CML HealthCare Inc.
TORONTO, ONTARIO–(Marketwired – Oct. 1, 2013) – LifeLabs Medical Laboratory Services (“LifeLabs”) and Borealis Infrastructure are pleased to announce the completion of the previously announced acquisition of CML HealthCare Inc. (“CML”). This marks the successful closing of the transaction and the completion of all government, regulatory and shareholder approvals since the agreement was announced on June 25, 2013.
The coming together of LifeLabs and CML will expand access for patients to community laboratory testing services in the province of Ontario. Both LifeLabs and CML share a history of, and commitment to, providing laboratory testing services that help Ontario health care providers diagnose, treat and prevent illness as one critical step in building a healthier Canada. With the merger of CML and LifeLabs, the company will build on this shared history and expand the delivery of high quality diagnostic services through patient service centers, homecare and long-term care facilities, and dedicated laboratory testing sites.
“I am thrilled that our two companies are uniting. Together, we can be even stronger partners with government and health care providers in the planning and delivery of high quality and accessible diagnostic services for Canadians,” said Sue Paish, President and co-CEO of LifeLabs. Ms. Paish will be joined by Thomas Wellner former President and CEO of CML HealthCare, as co-CEO of LifeLabs. “I am looking forward to working with Tom as we continue to enhance patient convenience, innovation and the delivery of exceptional quality to millions of Canadians.”
“With the completion of the purchase, we are now launching the transition process to bring these organizations together and enhance the delivery of diagnostic health care services in Canada,” said Thomas Wellner, co-CEO of LifeLabs. “We will continue to deliver excellent service to our clients, health care providers, and the communities that rely on LifeLabs for trusted diagnostic testing.”
“The combination of LifeLabs and CML marks another, significant step forward in building an outstanding medical lab business for Canadians. It further expands on the momentum begun earlier this year when LifeLabs purchased British Columbia-based BC Biomedical,” said Michael Rolland, President and CEO of Borealis Infrastructure. “Borealis looks forward to working together with the expanded LifeLabs team “to serve the healthcare needs of Canadians across British Columbia, Alberta and Ontario.”
On June 24, 2013, LifeLabs entered into an agreement with CML to purchase all of the issued and outstanding shares of CML for $10.75 per share in cash. The agreement, valued at approximately $1.2 billion, was subject to federal Competition Bureau review, shareholder and court approvals, as well as other regulatory/license approvals and standard closing conditions.
•On August 22, 2013 the Competition Bureau issued a ‘no action letter’ with respect to the agreement between LifeLabs and CML.
•On September 3, 2013, at a special meeting of CML shareholders, the agreement was approved by approximately 99.8% of the votes cast by CML common shareholders.
•On September 9, 2013, the Ontario Superior Court of Justice approved the agreement.
•As of September 30, 2013, all other LifeLabs and CML approvals and closing conditions were satisfied.
LifeLabs is a Canadian-owned company and is the country’s largest provider of community laboratory services with over 50 years of experience providing laboratory testing services helping healthcare providers diagnose, treat, monitor and prevent disease in patients. In communities across British Columbia and Ontario LifeLabs’ professionally trained staff delivers cost-effective, convenient access to laboratory testing services which are essential for optimal outcomes in healthcare. With the addition of the CML workforce, LifeLabs now employs approximately 5,400 professionally trained staff and delivers over 100 million laboratory tests, serving 19 million patients annually. LifeLabs is indirectly owned by OMERS Administration Corporation, whose interest is managed by Borealis Infrastructure.
With the purchase of CML, LifeLabs has also acquired three complementary businesses: Hemostasis Reference Laboratory, focused on specialized coagulation testing and equipment calibration for international customers; CML Bioanalytics, a specialty laboratory providing customized clinical trial testing for the biotechnology and pharmaceutics industries; and Rocky Mountain Analytical, headquartered in Calgary, Alberta, provides specialized testing for naturopaths and physicians practicing integrated medicine in Canada.
For more information, visit: www.lifelabs.com; www.cmlhealthcare.com; or www.bcbio.com.
About Borealis Infrastructure Management Inc.
Borealis is a leader in direct infrastructure investing with over a decade of investment experience. Borealis manages approximately CAD 10 billion in OMERS equity capital through investments in a diversified portfolio of large-scale infrastructure assets exhibiting stability and strong cash flows, in sectors including energy, transportation and government-regulated services. It has offices in Toronto, London and New York. Borealis is the infrastructure investment arm of OMERS, one of Canada’s largest pension funds with net assets of more than CAD 60 billion and an AAA credit rating. For more information please visit: www.borealis.ca or www.omers.com.
OMERS is one of Canada’s largest pension funds with over $60 billion in net assets. It provides first-class pension administration and innovative products and services to over 430,000 members. Approximately one in every 20 employees working in the province of Ontario is an OMERS member. Through the OMERS Worldwide brand, our team of investment professionals uses a direct drive, active management investment strategy to invest in public and private market assets, including publicly-traded equities, fixed-income, infrastructure, private equity and real estate. For more information, please visit: www.omers.com or www.omersworldwide.com.
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