Canada's CML HealthCare to exit diagnostic imaging business

Wed Jan 16, 2013 6:33am EST

Jan 16 (Reuters) - CML HealthCare Inc said it plans to sell its diagnostic imaging business and has started talks with potential buyers, three months after the company agreed to sell its imaging business in Alberta for C$17 million ($17.3 million).

CML HealthCare wants to complete the sale of its diagnostic imaging business by the end of 2013, and plans to use the net proceeds to reduce debt and invest in its core laboratory services business.

CML runs 140 patient-service centres in Ontario and 94 imaging centres in Ontario and British Columbia.

Canada's diagnostic imaging industry has come under pressure in recent months as budget deficits in many provinces force governments to review their healthcare funding programs.