February 2, 2010 (FinancialWire) — MDS Inc. (TSX: MDS) (NYSE: MDZ), a provider of products and services to the global life sciences markets, said that it has completed the divestiture of its MDS Analytical Technologies business to Danaher Corp. (NYSE: DHR) for $650 million in cash.

MDS plans to return around $400 million to $450 million of the sale proceeds to shareholders by way of a share buyback through a Substantial Issuer Bid. The company currently expects to initiate a Substantial Issuer Bid within the next 30 days.

Concurrent with the closing of the sale, MDS has initiated actions to terminate its undrawn CDN$500 million revolving credit facility and to retire all outstanding Senior Unsecured notes at a cost of around $223 million including principal, interest and make whole payments by February 3, 2010.

The company also deposited around $20 million in cash collateral to support existing letters of credit.

Toronto-based MDS provides technologies for use in medical imaging and radiotherapeutics, sterilization, and pharmaceutical contract research.

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