Carestream Health Inc. has entered into an agreement to sell its dental digital business.
The Rochester-based company, working with its parent company, Onex Corp., has agreed to sell the business to funds managed by Clayton, Dubilier & Rice LLC, a global private investment firm, and CareCapital Advisors Ltd., a specialist investment platform focused on dental and consumer health in Asia and part of Hillhouse Capital Management Ltd.
Terms of the deal were not disclosed.
Carestream employs some 1,200 in the Rochester area and some 7,000 globally. The company declined to provide the number of employees in digital dental business.
The new independent company will be named Carestream Dental, officials said.
Carestream’s dental digital business, which provides imaging systems and practice management software for general and specialist dental practices, is well-positioned for continued growth and success, officials said. Clayton, Dubilier & Rice and CareCapital intend to partner with the Carestream Dental team to build on the company’s leading positions and accelerate growth.
Dental X-ray film and anesthetics are not included in the agreement and will remain with Carestream, officials said.
Lisa Ashby, president of Carestream Dental, will become CEO of the new independent company upon the closing of the transaction.
“This is a landmark moment for Carestream Dental that positions the company for exciting future growth,” Ashby said.
Carestream will focus on its remaining business, which includes: medical imaging equipment, health care IT solutions, medical and dental film, non-destructive testing film and imaging equipment, and precision films and contract coating services.
“Through their passion, innovation and customer focus, our dental digital employees have built market-leading positions. I’m excited that Lisa and her team will have the opportunity to build an independent leading global oral healthcare company,” said Kevin Hobert, CEO, Carestream.
Subject to regulatory and other approvals, it is anticipated that the sale will close in the third quarter.
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