Carestream sells off international business lines to improve balance sheet

Radiology vendor Carestream Health is selling off its international business lines, focusing on the U.S. market in a bid to boost its balance sheet.

The Rochester, New York-based company on Dec. 31 announced the completion of its separation into two distinct entities based on geographic boundaries. Under terms of the deal, Carestream is unloading its international operations to Midea Group, a Chinese electrical appliance manufacturer. 

“This strategic split is the next step in our journey to enhance Carestream Health’s long-term success and strengthen our leadership and customer-centric focus,” CEO Todd Clegg said in a statement. “We are confident that the transaction will allow us to enhance our U.S. operations as we remain dedicated to delivering solutions that support our customers’ experience and our partners’ success.”

Carestream—a worldwide provider of medical imaging products, including X-ray systems for nondestructive testing—will retain its entire commercial and manufacturing operations in the U.S. It’s also holding onto its medical filmmaking business in Mexico, along with other film operations and commercial operations in China.

Most of Carestream’s other international components, previously known as Rayco (Shanghai) Medical Products Company Limited, will now fall under Midea. The company said it expects to benefit from an improved balance sheet and greater strategic emphasis on the U.S. This will strengthen its ability to “continue delivering industry-leading solutions and technologies to medical providers.” 

The move comes as Carestream has faced challenges in recent years, including declining performance in its medical film business. In early 2024, the company laid off over 200 employees and shuttered a manufacturing facility in Windsor, Colorado. Carestream also filed for Chapter 11 bankruptcy protection in 2022, aiming to wipe out around $470 million in debt.