Carestream, working with its parent company, Onex Corporation, has entered into an agreement to sell its dental digital business to funds managed by Clayton, Dubilier & Rice (CD&R), a leading global private investment firm, and CareCapital Advisors Limited (CareCapital). The new independent company will be named Carestream Dental.
Dental X-ray film and anesthetics are not included in the agreement and will remain with Carestream.
Lisa Ashby, President of Carestream Dental, will become CEO of the new independent company upon the closing of the transaction.
Carestream is committed to work with CD&R and Hillhouse/CareCapital to ensure a smooth transition for its dental digital employees and customers. Carestream will focus on the continued success and competitiveness of its remaining business, which includes: medical imaging equipment, healthcare IT solutions, medical and dental film, non-destructive testing film and imaging equipment, and precision films and contract coating services. These businesses have earned attractive market positions and generate strong earnings and cash flow, and will benefit from recent investments in innovative technologies and growth initiatives.
Subject to regulatory and other approvals, it is anticipated that the sale will close in the third quarter.