TORONTO - LifeLabs Medical Laboratory Services has a friendly deal to buy CML HealthCare Inc. (TSX:CLC) for $1.22 billion, including assumed debt.
The move would combine two of Ontario's largest operators of medical labs.
LifeLabs has agreed to pay $10.75 per share — a 49 per cent premium to Monday's closing price for CML shares.
LifeLabs will also assume $255 million of debt owed by CML HealthCare.
The deal is being supported by the boards of CML, LifeLabs and the Ontario Municipal Employees Retirement System, or OMERS, which owns LifeLabs.
CML shareholders will be asked to approve the deal at a special meeting on Sept. 3, which details to be sent to them in early August.