Onex Portfolio Company Buys Quantum Medical

Carestream Health, an Onex Partners portfolio company, confirmed Tuesday that it has bought Quantum Medical Imaging.

Financial terms of the deal, which closed Friday, were not announced. The seller was Riverside Partners.

News of the Quantum Medical sale was reported by peHUB last week. The transaction did not result from an auction process. Carestream and Quantum have known each other for years, a source says.

Quantum Imaging makes and designs medical radiographic systems for hospitals and image centers. Carestream, a former unit of Eastman Kodak, provides dental and medical imaging systems and healthcare IT services.

It was not clear how much Riverside invested in Quantum. The PE shop, which invests in health care and technology companies with $5 million to $25 million EBITDA, acquired Quantum via a recap in 2005. The Quantum investment came from Riverside’s third fund, which closed at $225 million in 2006. The sale is the first liquidity event for Fund III, which is fully invested, says David Belluck, a Riverside general partner.

“We are very pleased with the exit,” Belluck says. “We backed an extraordinary entrepreneur in Scott Matovich and he grew the company significantly from when we made the investment including navigating the recession.”

The sale is the latest involving Onex. On Tuesday, ResCare Inc. agreed to a $390 million buyout from Onex after the Canadian PE shop sweetened its initial bid by 65 cents a share.