Working with parent company Onex Corp., Carestream has agreed to sell its dental digital business to funds managed by private investment firm Clayton, Dubilier & Rice (CD&R) and specialist investment platform CareCapital Advisors Limited. The new independent company will be named Carestream Dental.
Carestream’s dental digital business provides imaging systems and practice management software for general and specialist dental practices globally. 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 company.
“With the strong support of our new partners, we look forward to becoming even more effective in serving the dynamic needs of the global oral healthcare industry with innovative products, high-quality services, and an unwavering commitment to excellence in all that we do,” said Ashby.
“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 Carestream CEO Kevin Hobert.
Carestream Dental holds more than 500 patents and has about 1,500 employees worldwide. Subject to regulatory and other approvals, the sale is expected to close in the third quarter of 2017. CD&R-managed funds will invest 75% of the equity in the transaction, while CareCapital affiliates will provide 25%. Additional terms of the transaction were not disclosed.