A Medical Device Daily
AFP Imaging (Elmsford, New York) said it has sold its Italian Quantitative Radiology (QR; Verona, Italy) subsidiary to Cefla Capital Services in a stock purchase transaction. QR will distribute its NewTom ConeBeam, three-dimensional dental X-ray equipment exclusively through AFP Imaging in North, Central and South America, Australia, South Africa and Israel.
Cefla's Dental Group (Imola, Italy) manufactures dental equipment. AFP said it has used the proceeds of the sale to "significantly reduce" debt and increase its working capital. The company also said the proceeds would "better position the company to expand its distribution throughout the world for its products." AFP will continue to make and distribute its other X-ray imaging products worldwide, which include EVA digital sensors, panoramic X-rays and film processors.
The QR NewTom three-dimensional imaging products have been marketed by AFP for the past three years with more than 250 of these installed units throughout North and South America as well as in other territories, the company noted. According to AFP, 3-D, diagnostic imaging is a "leading edge technology" utilized in treatment planning for dental implants, orthodontics and other specialized procedures including sleep apnea analysis.
"Through this transaction and working with Cefla, we have a new, long term strategy, in which the company will have access to greater sales and marketing resources along with a broader dental product line," said R. Scott Jones, chairman of AFP. "Cefla is a well-established, Italian supplier of dental chairs, operatory delivery systems, panoramic X-ray units and, now, ConeBeam, 3-D radiography. Cefla's Dental Group will have AFP as its strong distributor, in our marketplace, to expand our mutual, global growth efforts. The Cefla products have outstanding functions, features and benefits for the dental professional along with attractive modern design. We look forward to the many opportunities this transaction presents for the company's customers, employees and shareholders."
In other dealmaking activity, Coventry Health Care (Bethesda, Maryland) said it has completed its divestiture of First Health Services Corporation to Magellan Health Services (Avon, Connecticut).
Coventry describes itself as a diversified national managed healthcare company that operates health plans, insurance companies, network rental and workers' compensation services companies.