MDS Inc. (TSX: MDS; NYSE: MDZ), a leading provider of products and services to the global life sciences markets, today announced that it has signed an agreement to sell its Central Labs operation, which conducts analysis of samples from late-stage clinical trials to Czura Thornton, a private investment group based in Jersey, Channel Islands.
MDS will receive approximately $8 million in proceeds from the transaction, including certain transition services. The purchase price may be increased by up to $4 million if certain performance thresholds are attained by Central Labs following the closing. The transaction is subject to customary post-closing contingencies and adjustments.
"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.
Central Labs
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 Europe, North America and Asia. Central Labs provides a comprehensive range of late-stage laboratory services to global clients, including standardized assays, integrated data management, international laboratory study co-ordination and site support. Its proprietary, industry-leading Apollo CLPM(TM) (Central Lab Protocol Management) system offers clients real-time access to study data from around the world.
"We intend to build and strengthen the Central Lab business," said Czura Thornton co-founder Nick Thornton. "We believe the business's international platform, world-class facilities and highly skilled people will enhance our strong client relationships. While the Central Lab business will co-operate closely with Chiltern, our wholly owned CRO, it will be run separately."