Eastman Kodak said it will sell its health group imaging business to Onex Healthcare Holdings, a subsidiary of Canadian investment company Onex, for up to $2.55 billion.
The sale comes as the iconic photographic products company has been scrambling to generate larger profits from digital photography as its storied film business erodes. It has reported two straight years of quarterly losses.
About 8,100 employees associated with the health group, which provides medical imaging systems and services, will continue with the business, Kodak said. The deal is expected to close in the first half of this year.
Under terms of the deal, Kodak will receive $2.35 billion in cash at closing, and up to an additional $200 million in future payments if Onex Healthcare investors realize an internal rate of return of more than 25% of their investment.
Kodak expects to use proceeds from the deal to repay about $1.15 billion of secured term debt and for other undisclosed purposes.