OMERS’ LifeLabs to take CML HealthCare private

LifeLabs Medical Laboratory Services, which is indirectly owned by OMERS through its Borealis Infrastructure unit, has made a friendly takeover bid to take CML Healthcare private.

The offer of $10.75 a share is a 49% premium to CML’s closing price on Monday. The deal, which includes debt, values CML at $1.2 billion.

The combination of LifeLabs with CML will expand community lab testing services for patients in the province of Ontario. LifeLabs and CML provide laboratory-testing services that help Ontario healthcare providers diagnose, treat, monitor and prevent disease in patients.

“We see an exciting future for this business,” says Michael Rolland, president and CEO of Borealis Infrastructure.

The acquisition is subject to shareholder, regulatory and court approval. The transaction is expected to close in September 2013.

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