Canadian private equity firm Onex will retain its ownership of Carestream Health and has refinanced the company's debt.
Rumors in the financial press in recent weeks portrayed Onex as looking to sell Carestream for as much as $3.5 billion. But Onex called off the sale after it was unable to find a buyer willing to pay that price, according to published reports.
Onex announced on June 10 that it had recapitalized Carestream's balance sheet and would continue to invest in the firm's long-term growth. Carestream raised $2.4 billion to fund a $725 million distribution to shareholders, as well as to refinance debt and pay fees associated with the recapitalization.
Onex and its parent firm Onex Group will receive a distribution of $673 million; combined with prior distributions, the Onex companies will have received approximately $1.2 billion, representing a 2.6 times gross multiple of invested capital and a 22% cash-on-cash rate of return. Onex will continue to own approximately 91% of Carestream.
Onex said that Carestream is expected to generate $457 million of earnings before interest, taxes, depreciation, and amortization (EBITDA) and $190 million in free cash flow pro forma.
