Carestream Health has finalized the separation of its business into two distinct entities, dividing its U.S. and international operations.

The move creates Carestream Health, which will focus on serving the U.S. market, and Carestream Healthcare International Company Limited, renamed from Rayco (Shanghai) Medical Products Company Limited, now operating under new ownership.

The international division, referred to as Carestream International, has been acquired by Midea Group, a China-based multinational technology company. The deal includes the transfer of Carestream’s business units operating in most non-U.S. markets to Midea affiliates.
Following the transaction, the Rochester, New York-based Carestream Health will retain all commercial and manufacturing operations in the U.S., film production facilities in Mexico, and selected film and nondestructive testing operations in China. Company representatives said the restructuring is intended to sharpen regional focus and improve long-term growth prospects.

“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,” said Todd Clegg, CEO of Carestream Health. “We are confident that the transaction will allow us to enhance our U.S. operations... Midea is well suited to drive the continued growth in international markets.”

Financial terms of the transaction were not disclosed. Lazard served as financial advisor and Kirkland & Ellis LLP acted as legal counsel to Carestream Health.

Carestream Health provides medical imaging systems, X-ray technologies for industrial testing, and precision coating services. The newly independent Carestream International will continue serving global markets under Midea’s ownership.

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