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SEC Potential persons who are to respond to the collection of information
1746 (2- contained in this form are not required to respond unless the form
98) displays a currently valid OMB control number.
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UNITED STATES OMB APPROVAL
SECURITIES AND EXCHANGE COMMISSION ----------------------------
Washington, D.C. 20549 OMB Number: 3235-0145
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SCHEDULE 13D Expires: October 31, 2002
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Estimated average burden
hours per response. . . 14.9
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Under the Securities Exchange Act of 1934
(Amendment No. )*
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Dynacare Inc.
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(Name of Issuer)
Common Stock
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(Title of Class of Securities)
26792020-5
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(CUSIP Number)
Bradford T. Smith
Executive Vice President,
Chief Legal Counsel and Secretary
Laboratory Corporation of America Holdings
358 South Main Street
Burlington, North Carolina 27215
(336) 229-1127
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(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
May 8, 2002
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(Date of Event which Requires filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D, and is filing this
schedule because of (S)(S) 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the
following box. [ ]
Page 2 of 8
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1. Names of Reporting Persons. I.R.S. Identification Nos. of
above persons (entities only).
Laboratory Corporation of America Holdings
13-3757370
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2. Check the Appropriate Box if a Member of a Group (See
Instructions)
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(a) .......................................................
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(b) X......................................................
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3. SEC Use Only ...............................................
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4. Source of Funds (See Instructions) OO ......................
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5. Check if Disclosure of Legal Proceedings Is Required
Pursuant to Items 2(d) or 2(e) .............................
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6. Citizenship or Place of Organization State of Delaware......
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Number of 7. Sole Voting Power -0- ......................................
Shares -----------------------------------------------------------------
Beneficially 8. Shared Voting Power 10,495,192 .............................
Owned by -----------------------------------------------------------------
Each 9. Sole Dispositive Power -0- .................................
Reporting -----------------------------------------------------------------
Person 10. Shared Dispositive Power -0- ...............................
With
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11. Aggregate Amount Beneficially Owned by Each Reporting
Person .....................................................
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12. Check if the Aggregate Amount in Row (11) Excludes Certain
Shares (See Instructions) ..................................
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13. Percent of Class Represented by Row (11)....................
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14. Type of Reporting Person (See Instructions)
CO..........................................................
............................................................
............................................................
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Page 3 of 8
Item 1. Security and Issuer
This Schedule 13D relates to the shares of common stock (the "Common
Stock") of Dynacare Inc., an Ontario corporation ("Dynacare"). The
principal executive offices of Dynacare are located at 14900 Landmark
Boulevard, Dallas, Texas 75254.
Item 2. Identity and Background
(a) Name, place of organization, principal business:
This Schedule 13D is filed by Laboratory Corporation of America
Holdings, a corporation organized under the laws of the State of
Delaware ("LabCorp"). LabCorp is the second largest independent
clinical laboratory company in the United States, based on 2001 net
revenues. Through a national network of laboratories, LabCorp offers
more than 4,000 different clinical laboratory tests which are used by
the medical profession in routine testing, patient diagnosis, and in
the monitoring and treatment of disease. LabCorp has developed
specialty and niche businesses based on certain types of specialized
testing capabilities and client requirements, such as HIV genotyping
and phenotyping, diagnostic genetics, clinical research trials and
oncology testing.
(b) Address of principal business and principal office:
The address of the principal business and principal executive office
of LabCorp is 358 South Main Street, Burlington, North Carolina 27215.
(c) Information provided pursuant to Instruction C:
For information with respect to the identity and background of each
director and executive officer of LabCorp, see Schedule I attached
hereto.
(d) No criminal convictions:
During the past five years, neither LabCorp nor, to LabCorp's
knowledge, any person identified in Schedule I to this Schedule 13D,
has been convicted in any criminal proceeding (excluding traffic
violations or similar misdemeanors).
(e) No civil proceedings:
During the past five years, neither LabCorp nor, to LabCorp's
knowledge, any person identified in Schedule I to this Schedule 13D,
has been a party to a civil proceeding of a judicial or administrative
body of competent jurisdiction resulting in a judgment, decree or
final order enjoining future violations of or prohibiting or mandating
activity subject to federal or state securities laws or finding any
violation with respect to such laws.
(f) Citizenship:
Page 4 of 8
To the best of LabCorp's knowledge, all persons identified in the
attached Schedule I are citizens of the United States of America.
Item 3. Source and Amount of Funds or Other Consideration
LabCorp agreed to acquire Dynacare (the "Acquisition") pursuant to the
Pre-Merger Agreement dated as of May 8, 2002 (the "Pre-Merger
Agreement"), by and among LabCorp, Dynacare and a wholly-owned
subsidiary of LabCorp, and subject to the conditions set forth
therein. As an inducement for LabCorp to enter into the Pre-Merger
Agreement and in consideration thereof, certain executive officers,
directors and stockholders of Dynacare named on Schedule II
(collectively, the "Stockholders") entered in a Stockholder Agreement
(collectively, the "Stockholder Agreements") with LabCorp. Pursuant to
the Stockholder Agreements, each Stockholder has agreed to vote the
Dynacare Common Stock it owns in favor of the Acquisition and against
competing proposals, and to grant LabCorp, upon request, a proxy with
respect to its Dynacare Common Stock. Pursuant to the Stockholder
Agreements, each Stockholder has also granted LabCorp an option to
purchase its shares of Dynacare Common Stock for a purchase price per
share equal to the merger consideration per share of Dynacare Common
Stock. The Stockholder Agreements cover an aggregate of 10,495,192
shares of Dynacare Common Stock owned by the Stockholders. In
addition, the Stockholder Agreements cover any additional shares
acquired upon exercise of options held by such Stockholders. A form of
the Stockholder Agreement is filed herewith as Exhibit 99.1 and
incorporated herein by reference.
Item 4. Purpose of Transaction
On May 8, 2002, LabCorp, Dynacare and a wholly-owned indirect
subsidiary of LabCorp entered into the Pre-Merger Agreement. Following
the Acquisition, Dynacare will be amalgamated with and into the
wholly-owned subsidiary of LabCorp as a result of which holders of
Dynacare Common Stock will receive 0.1164 shares of LabCorp's common
stock and $11.50 in cash for each share of Dynacare Common Stock
outstanding at the time of the Acquisition. The Acquisition which is
expected to close in the second or third calendar quarter of 2002, is
contingent on the fulfillment of certain conditions in the Pre-Merger
Agreement including, but not limited to, all required regulatory
approvals, and the approval of the Acquisition by the securityholders
of Dynacare. The Stockholder Agreements are intended to enhance the
likelihood of timely approval of the Acquisition by Dynacare's
securityholders.
Item 5. Interest in Securities of the Issuer
(a)-(b)As of May 8, 2002, the shares subject to the Stockholder Agreements
consisted of 10,495,192 shares of Dynacare Common Stock, representing
approximately 48.2% of the total number of issued and outstanding
shares of Dynacare Common Stock on May 8, 2002. The 10,495,192 total
includes options to purchase 1,246,859 shares of Dynacare Common Stock
that are exercisable within sixty days from the date hereof. The
10,495,192 total
Page 5 of 8
excludes 105,000 shares subject to options held as of the date of the
Stockholders Agreements that are not exercisable within sixty days of
the date hereof. The percentage of 48.2% is calculated based on
19,326,946 shares of Dynacare Common Stock outstanding as of May 8,
2002, plus 2,343,756 shares subject to exercisable options.
By virtue of the Stockholder Agreements entered into with each person
identified on Schedule II, LabCorp may be deemed to have the right to
acquire voting and dispositive power over the shares subject thereto
because the Stockholder Agreements grant LabCorp the right to (i)
require that the Stockholder give a proxy to LabCorp upon request to
vote those shares in favor of the Acquisition and (ii) acquire those
shares; however, LabCorp is not entitled to any other rights as a
stockholder of Dynacare with respect to the shares of Dynacare Common
Stock covered by the Stockholder Agreements. LabCorp disclaims
membership in any group consisting of one or more persons listed on
Schedule II and disclaims beneficial ownership of any shares
beneficially owned by any such persons. The filing of this Schedule
13D shall not be deemed as an admission that LabCorp is the beneficial
owner of any shares owned by any persons listed on Schedule II or a
member of any group consisting of such persons.
(c) Except as described in this Schedule 13D, there have been no
transactions in the shares of Dynacare Common Stock effected by
LabCorp or, to the best of LabCorp's knowledge, any person identified
in Schedule I of this Schedule 13D, during the last sixty days.
(d) Not Applicable.
(e) Not Applicable.
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect
to Securities of the Issuer
Except as described in this Schedule 13D and to the best of LabCorp's
knowledge, there are no contracts, arrangements, understandings, or
relationships (legal or otherwise) among the persons named in Item 2
and between such persons and any person with respect to any securities
of Dynacare.
Item 7. Material to Be Filed as Exhibits
Exhibit 99.1 Form of Stockholder Agreement between LabCorp and the other
Stockholders identified in Schedule II hereto.
Exhibit 99.2 Form of Stockholder Agreement between GTCR and LabCorp.
Page 6 of 8
Signature
After reasonable inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this statement is true, complete and correct.
May 10, 2002
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Date
/s/ Bradford T. Smith
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Signature
Bradford T. Smith Executive Vice President
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Name/Title
Page 7 of 8
Schedule I
Executive Officers and Directors of LabCorp*
Name: Principal Occupation or Employment:
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Thomas P. Mac Mahon Chairman of the Board, President, and Chief Executive
Officer
Wesley R. Elingburg Executive Vice President, Chief Financial Officer, and
Treasurer
Myla P. Lai-Goldman, M.D. Executive Vice President, Chief Scientific Officer, and
Medical Director
Richard L. Novak Executive Vice President, and Chief Operating Officer
Bradford T. Smith Executive Vice President of Public Affairs, Human
Resources, Law and Compliance, and Secretary
Stevan R. Stark Executive Vice President of Sales and Marketing
Jean-Luc Belingard Director
Wendy E. Lane Director
Robert E. Mittelstaedt, Jr. Director
James B. Powell, M.D. Director
David B. Skinner, M.D. Director
Andrew G. Wallace, M.D. Director
*Business address for each individual: c/o Laboratory Corporation of America
Holdings, 358 South Main Street, Burlington, North Carolina 27215.
Page 8 of 8
Schedule II
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Number of Shares of Number of Options to
Dynacare Common Stock Purchase Dynacare Common
Name Beneficially Owned* Stock Beneficially Owned*
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Golder, Thoma, Cressey, Rauner Fund V, L.P. 4,590,190
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GTCR Associates V, L.P. 8,020
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Albert Latner 366,694 207,810
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EPLCO Holdings Ltd. 344,802
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857501 Ontario Limited 115,459
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SDLCO Holdings Ltd. 949,207
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MELCO Holdings Corp. 958,566
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EPLCO Realty Group Ltd. 192,164
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JILCO Holdings Ltd. 68,631
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Joshua Latner 477,132
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Arfall Holdings Sprl. 82,443
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Asteroid Holdings Sprl. 71,702
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Ditlent Holdings Sprl. 300,767
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Mooster Holdings Sprl. 303,911
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Kakao Holdings Sprl. 406,146
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Harvey Shapiro 6,250 507,572
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Osama Sherif 3,125 346,715
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Zbig Biskup 3,124 289,762
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Michael Latner 0 207,810
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* As represented to LabCorp in the Stockholder Agreements.