Onex-Backed Carestream Raises Debt for $725M Distribution

Rochester, New York-based Carestream Health Inc., a medical imaging systems provider, and portfolio company of Onex Corp., has raised US$2.4 billion of debt to fund a US$725 million distribution to shareholders. The new debt will also help refinance existing debt facilities and pay recapitalization expenses. Combined with prior distributions, Onex will have received approximately US$1.2 billion in total, representing a 2.6X gross multiple of invested capital and a 22% cash-on-cash rate of return, and will continue to own approximately 91% of Carestream.


Onex Corporation (“Onex”) (TSX: OCX) and its affiliates (the “Onex Group”) announced today that Carestream Health, Inc. (“Carestream”) raised approximately $2.4 billion of debt to fund a $725 million distribution to shareholders, refinance existing debt facilities and pay fees and expenses associated with this recapitalization.

The Onex Group will receive a distribution of approximately $673 million, of which Onex’ share will be approximately $295 million, including carried interest of $48 million. Combined with prior distributions, the Onex group will have received approximately $1.2 billion, representing a 2.6x gross multiple of invested capital and a 22% cash-on-cash rate of return, and will continue to own approximately 91% of Carestream.

The Onex Group acquired Carestream in 2007 in a corporate carve-out from its parent, the Eastman Kodak Company. Over the past six years, Onex has worked closely with management on various initiatives that have resulted in a stronger and faster-growing digital platform and increased cash flow generation from its film operations. In 2013, Carestream is expected to generate $457 million of EBITDA and approximately $190 million in free cash flow pro forma for the recapitalized balance sheet.

“This is an excellent outcome for Onex and Carestream,” said Robert Le Blanc, a Senior Managing Director at Onex. “Carestream is truly an outstanding company led by a terrific CEO, Kevin Hobert, and deep and talented management team. We look forward to our continued partnership to further build on Carestream’s success.”

About Onex
With offices in Toronto, New York and London, Onex is one of the oldest and most successful private equity firms. Onex acquires and builds high-quality businesses in partnership with talented management teams. The Company has approximately $16 billion of assets under management, including $5 billion of proprietary capital, in private equity, credit securities and real estate. Onex invests its proprietary capital directly and as a substantial limited partner in its Funds.

Onex’ businesses have assets of $44 billion, generate annual revenues of $37 billion and employ approximately 243,000 people worldwide. Onex shares trade on the Toronto Stock Exchange under the stock symbol OCX. For more information on Onex, visit its website at The Company’s security filings can also be accessed at

This news release may contain forward-looking statements that are based on management’s current expectations and are subject to known and unknown uncertainties and risks, which could cause actual results to differ materially from those contemplated or implied by such forward-looking statements. Onex is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or otherwise.

For further information:
Emma Thompson
Vice President, Investor Relations
Tel: 416.362.7711

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