Kodak ( EK), seeking to sharpen its focus on its consumer and professional imaging business, agreed to sell its health care division to Canada's Onex for $2.35 billion.

The health group makes medical and dental imaging products, including digital X-ray systems, medical printers and X-ray film. The division had revenue of $2.54 billion in the 12 months ended Sept. 30.

"This sale maximizes shareholder value by obtaining a full and fair valuation for this business, and allows Kodak to increase its financial flexibility," said Kodak Chairman and CEO Antonio Perez in a press release. "We now plan to focus our attention on the significant digital growth opportunities within our businesses in consumer and professional imaging and graphic communications."

Kodak announced in May that it planned to put the health care business up for sale as part of its ongoing efforts to transform itself from a film and traditional camera business into a consumer digital imaging powerhouse.

Onex may also make up to $200 million in additional payments if it achieves certain returns on investments. Because of tax-loss carry forwards, Kodak expects to retain the "vast majority" of the initial $2.35 billion cash proceeds. The company plans to use the proceeds to fully repay its secured term debt of about $1.15 billion.

The deal is expected to close in the first half of this year.

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