The Rochester, New York-based company was formed in 2007 when the Canadian buyout firm bought Eastman Kodak Company's health group and renamed the business Carestream. The company provides digital X-ray systems, molecular imaging systems and dental imaging products, software and services.
The auction of Carestream, which is in early stages, has drawn initial interest from several large private equity firms, the people said, adding that industry buyers are less likely to participate given the company's low to negative growth.
First-round offers are due this week, one of the people added.
Carestream has around $450 million in annual earnings before interest, tax, depreciation and amortization (EBITDA) and could be sold for 7 to 8 times EBITDA, two of the people said.
All the people asked not to be named because the auction is not public. A Carestream spokesman said the company does not comment on rumor or speculation. Onex could not be immediately reached for comment, while Goldman Sachs, Bank of America and Credit Suisse declined to comment.
We'll see what this little gem brings at auction.