Kodak Completes Sale of Health Group to Onex
ROCHESTER, N.Y.,- Eastman Kodak Company (NYSE:EK) announced today that it has completed the sale of its Health Group to an affiliate of Onex Corporation (TSX: OCX), for up to $2.55 billion. The acquired business is continuing under the name Carestream Health, Inc.
Kodak has received $2.35 billion in cash, and will receive up to $200 million in additional future payments if Onex achieves certain returns with respect to its investment. Primarily because of tax-loss considerations, Kodak expects to retain the vast majority of the initial $2.35 billion cash proceeds. As previously indicated, the company plans to use a portion of the proceeds to fully repay its approximately $1.15 billion of secured term debt.
Approximately 8,100 employees associated with the Health Group have transferred to Carestream Health. The business is a worldwide leader in information technology, molecular imaging systems, medical and dental imaging, including digital x-ray capture, medical printers, and x-ray film.
“We are now studying options for the cash that will remain after we pay off the secured term debt,” said Antonio M. Perez, Chairman and Chief Executive Officer. “Through this rigorous process with our Board of Directors, we are focusing on financially attractive ways to drive profitable growth and enhance shareholder returns.”
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