Canadian private equity firm Onex has canceled its bid to sell Carestream Health after being unable to find a suitor willing to pay its price of as much as $3.5 billion, according to a report published by Reuters.
Bain Capital was the last remaining private equity firm talking to Onex about a possible deal, but it dropped out of the auction last week, Reuters reported. Onex is now mulling other options for Carestream, including a dividend recapitalization that would have Carestream borrowing money to pay Onex a special dividend.
Onex formed Carestream in 2007 after purchasing Eastman Kodak's health group for $2.35 billion, which was equivalent to less than five times its earnings before interest, taxes, depreciation, and amortization (EBITDA). The company was reportedly hoping to sell off Carestream for seven to eight times its EBITDA, Reuters said.
