Kodak Co., the world’s largest photography company, will sell its health-care imaging unit to Onex Corp. Canada’s firm will pay $2.35 billion in cash and $200 million in future payments if it achieves certain returns on the investment.
Kodak’s Health Group makes X-ray film, medical printers and information systems. The unit’s revenue was $2.54 billion for the 12 months ended September 30, or about 17 percent of Kodak’s business.
Tom Carroll, vice president of research at Bullfinch Funds said “It’s quite a reasonable price,”
Kodak co. main units were posting losses for eight straight quarters and its debt had been rose to $3.3billion. Chief Executive Officer Antonio Perez indicate that it would keep most of the $2.35 billion in initial proceeds and use it to repay about $1.15 billion in secured term debt.
Kodak has made a costly transition to digital cameras and photo services, to focus on the significant digital growth opportunities within the businesses as well as supporting its commercial printing operations, and away from its longstanding business of photographic film as demand declines.
