MISSISSAUGA, ONTARIO--(Marketwire - Oct. 2, 2012) - CML HealthCare Inc. (TSX:CLC) (the "Company" or "CML") announced today it has entered into an agreement to divest its diagnostic imaging business in Alberta by selling the operations to Canada Diagnostic Centres, an Alberta based imaging provider for total cash consideration of $17.0 million, subject to certain closing adjustments. Included in the sale are all of CML's Alberta operations comprising nine imaging clinics located in Calgary, Edmonton and Fort Saskatchewan which collectively had revenue of $20.8 million for the twelve months ended June 30, 2012. Closing of the transaction is subject to customary conditions and is expected in the fourth quarter of 2012.
"The Alberta imaging operation has been under increased competition due to the lack of barriers to obtaining licenses in that province and a shortage of qualified technologists. By exiting a challenging market dominated by large local practice groups, we can redeploy our efforts and capital into new areas of growth which will diversify our tests, services and payor base as per our stated strategic plans," said Thomas Wellner, President and Chief Executive Officer of CML. "We would like to thank the dedicated employees and radiologists who have supported our Alberta Imaging operations, and wish them continued success being part of a larger Alberta-owned and operated business", continued Mr. Wellner.
About CML HealthCare Inc.
Based in Mississauga, Ontario, CML HealthCare Inc. is Canada's leading community-based, medical diagnostic services provider operating 140 laboratory patient service centres in Ontario and 103 imaging patient service centres in Ontario, Alberta and British Columbia. 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.
About Canada Diagnostic Centres
Since 1993, Canada Diagnostic Centres, a privately operated imaging provider, has been offering services primarily through its Alberta operations. It provides a multitude of radiological services including publicly covered Ultrasound, Mammography, Bone Densitometry, Fluoroscopy, Pain Management injections and X-Ray and private and third party MRI and CT services. Canada Diagnostic Centres continues to uphold its Exceptional Patient Care standards and leading edge diagnostic imaging reputation.