The bidders for Carestream Health Inc have dropped to two companies, according to anonymous sources familiar with the matter. The subsidiary of Onex Corp's fortunes has suddenly fallen, as the projected sale price was expected to US$3.5 billion.
The two firms are Bain Capital LLC and Thomas H. Lee Partners LP with other private equity firms such as Carlyle Group LP and KKR & Co LP withdrew their bids due to their perceived uncertain outlook of the future of Carestream.
Onex was forecasting that the proceeds of the sale would be between seven to eight times the earnings before taxes, depreciation and amortization or EBITDA of Carestream. Now, with the thinning number of bidders, the offers may just barely reach six times the company's EBITDA, placing the company value at US$2.5 billion.
While there is no formal date for the final Carestream bids are to be sent in, there is also uncertainty whether or not Onex would be selling below its price expectations.
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