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CML HealthCare Inc. Announces First Series of Diagnostic Imaging Clinic and License Divestments With Gross Proceeds Totaling $44.8 Million
MISSISSAUGA, ONTARIO--(Marketwired - June 13, 2013) - CML HealthCare Inc. (CLC.TO) (the "Company" or "CML"), a leading Canadian community-based provider of medical diagnostic testing services, is pleased to announce the first of a series of transactions to divest its diagnostic imaging operations, excluding its two Ontario MRI/CT locations. As previously announced, CML's business strategy is to exit the majority of its diagnostic imaging business and focus on growing its core laboratory business through optimizing operations, building capacity, differentiating service offerings, and diversifying its payor base.
In this first series of divestitures, the Company has entered into several sales agreements for seven imaging locations in Ontario, 21 imaging locations in British Columbia (representing all of CML's interest in the province), and 17 inactive imaging licenses in Ontario, for total gross proceeds of $44.8 million. These locations generated annual revenues of $32.6 million in 2012. Closing of these transactions is subject to customary conditions, will take place at various times, and is expected to continue into the fourth quarter of 2013. Net proceeds will be used to reinvest in the business and applied to debt.
"The sale of our diagnostic imaging business represents a major milestone in CML's transition to a pure-play laboratory services provider. Throughout this process, we have maintained access for our clients, as well as the high quality standards expected of us by our partners. I want to personally thank our dedicated staff for their continued professionalism and commitment to delivering high quality care for our clients," said Thomas Wellner, President and Chief Executive Officer of CML. "The valuation for this first series of our diagnostic imaging divestitures is in line with our expectations. We are well advanced in the divestment of the remaining clinics and licences, having received significant market interest, and will be making further announcements regarding the sale of the remaining Ontario diagnostic imaging locations in the coming weeks."
About CML HealthCare Inc.
Based in Mississauga, Ontario, CML HealthCare Inc. is a leading Canadian community-based, medical diagnostic services provider. In addition to its network of 112 Client C.A.R.E. Centres in Ontario and 82 imaging centres in Ontario and British Columbia, CML operates three subsidiaries: 1) Hemostasis Reference Laboratory, focused on specialized coagulation testing and equipment calibration for international customers; 2) CML Bioanalytics, a specialty laboratory providing customized clinical trial testing for the biotechnology and pharmaceutics industries; and 3) Rocky Mountain Analytics, providing specialized testing for naturopaths and physicians practicing integrated medicine in Canada. CML is publicly-traded on the Toronto Stock Exchange under the symbol "CLC" and has approximately 89.8 million common shares outstanding. For more information, please visit www.cmlhealthcare.com or follow CML on Twitter @cmlhealthcare.
