by
Gus Iversen, Editor in Chief | May 20, 2016
Carestream's RSNA 2014 booth
Courtesy: Carestream
Carestream Health may be on the auction block, with owning investment firm Onex Corp exploring a breakup of the medical imaging company that could bring in upward of $3 billion, including debt, according to unnamed sources.
The report comes from
a Reuters exclusive based on information provided by people familiar with the matter.
Reuters stated that this latest move underscores the diverging fortunes of Carestream's business — rising sales in its smaller digital dental equipment division and challenges to the film X-ray business.
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In March,
Bloomberg reported that the company won a $3.6 million federal contract from the U.S. Department of Veterans Affairs National Acquisition Center for X-ray film, equipment and supplies.
As the health care industry moves away from a film business that was once highly lucrative, legislation such as the Consolidated Appropriations Act of 2016 is expected to incentivize facilities to upgrade their X-ray systems to digital radiography (DR) by impacting reimbursement.
Film aside, Carestream also offers a range of advanced medical imaging solutions for computed radiography (CR), DR, cone beam CT, and ultrasound — as well as health IT solutions aimed at improving hospital workflow.
The company frequently announces hospital purchases and partnerships involving its medical solutions, such as the announcement last month that Wisconsin's Fox Valley Hematology & Oncology was
implementing the company's Vue for Clinical Collaboration Platform for advanced enterprise image management.
The new Reuters report said Carestream is working with investment firm Goldman Sachs Group for its film and digital medical imaging business, while another investment firm, Jefferies Group, has been retained to shop its dental imaging business.
Carestream was formed in 2007 when Onex purchased the health care division of imaging company Eastman Kodak for $2.35 billion.
This isn't the first time Onex has taken offers on Carestream. In 2013 the company tried to sell the company but was not satisfied with the offers it received. The desired sales price at that time was estimated to be as much as $3.5 billion, three people familiar with the matter
told Reuters at that time.
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