Kodak Quits Medical ImagingKodak Quits Medical Imaging

Eastman Kodak Co. (Rochester, NY) says it will sell its health business to Onex Corp. (Toronto) for about $2.55 billion because it wants to focus on the consumer market. Kodak's Health Group includes molecular imaging, digital X-ray technology, medical printers, X-ray film, and various forms of information technology. The sale includes all of the health group's plants. Onex, a diversified conglomerate, is one of Canada's largest companies. Medical imaging is one of the device industry's hottest fields, with a staggering pace of innovation in recent years. Given that, Kodak's divestiture is curious. Perhaps it didn't want to make the investments necessary to keep up with competitors.