Richardson Electronics Announces Strategic Transaction for its Richardson Healthcare Business Unit
Richardson Electronics (NASDAQ: RELL) has announced a strategic asset sale of its Richardson Healthcare business unit to DirectMed Imaging. The transaction, completed on January 24, 2025, includes a 10-year global supply agreement where Richardson will provide DirectMed with repaired Siemens CT X-ray tubes.
The company will continue manufacturing ALTA CT X-ray tubes for DirectMed for approximately 12-18 months. The remaining healthcare operations, primarily focusing on CT X-ray tube manufacturing and repair, will be integrated into the company's PMT reportable segment.
This strategic move aligns with Richardson's focus on reallocating assets to support their growing Green Energy Solutions business, with management expecting the transaction to simplify operations and improve their financial model.
Richardson Electronics (NASDAQ: RELL) ha annunciato una vendita strategica di asset della sua unità business Richardson Healthcare a DirectMed Imaging. La transazione, completata il 24 gennaio 2025, include un accordo di fornitura globale di 10 anni in cui Richardson fornirà a DirectMed tubi a raggi X Siemens CT riparati.
L'azienda continuerà a produrre tubi a raggi X ALTA CT per DirectMed per un periodo di circa 12-18 mesi. Le operazioni sanitarie rimanenti, che si concentrano principalmente sulla produzione e riparazione di tubi a raggi X CT, saranno integrate nel segmento reportabile PMT dell'azienda.
Questa mossa strategica è in linea con l'obiettivo di Richardson di riallocare gli asset per supportare la loro crescente attività di Soluzioni Energetiche Verdi, con la direzione che si aspetta che la transazione semplifichi le operazioni e migliori il loro modello finanziario.
Richardson Electronics (NASDAQ: RELL) ha anunciado una venta estratégica de activos de su unidad de negocio Richardson Healthcare a DirectMed Imaging. La transacción, completada el 24 de enero de 2025, incluye un acuerdo de suministro global de 10 años en el que Richardson proporcionará a DirectMed tubos de rayos X Siemens CT reparados.
La compañía continuará fabricando tubos de rayos X ALTA CT para DirectMed durante aproximadamente 12-18 meses. Las operaciones de atención médica restantes, que se centran principalmente en la fabricación y reparación de tubos de rayos X CT, se integrarán en el segmento reportable PMT de la empresa.
Este movimiento estratégico se alinea con el enfoque de Richardson de reubicar activos para apoyar su creciente negocio de Soluciones de Energía Verde, con la gerencia esperando que la transacción simplifique las operaciones y mejore su modelo financiero.
리차드슨 전자 (NASDAQ: RELL)는 리차드슨 헬스케어 사업부의 자산을 DirectMed Imaging에 전략적으로 매각한다고 발표했습니다. 2025년 1월 24일에 완료된 이 거래에는 리차드슨이 DirectMed에 수리된 Siemens CT 엑스레이 튜브를 제공하는 10년 글로벌 공급 계약이 포함되어 있습니다.
회사는 DirectMed를 위해 약 12~18개월 동안 ALTA CT 엑스레이 튜브를 계속 제조할 것입니다. 주로 CT 엑스레이 튜브의 제조 및 수리에 중점을 둔 잔여 헬스케어 운영은 회사의 PMT 보고 가능한 세그먼트로 통합될 것입니다.
이 전략적 조치는 리차드슨이 성장하는 친환경 에너지 솔루션 사업을 지원하기 위해 자산을 재배치하려는 집중과 일치하며, 경영진은 이번 거래가 운영을 간소화하고 재무 모델을 개선할 것으로 기대하고 있습니다.
Richardson Electronics (NASDAQ: RELL) a annoncé une vente stratégique d'actifs de sa division Richardson Healthcare à DirectMed Imaging. La transaction, finalisée le 24 janvier 2025, comprend un accord de fourniture mondiale de 10 ans selon lequel Richardson fournira à DirectMed des tubes à rayons X Siemens CT réparés.
L'entreprise continuera de fabriquer des tubes à rayons X ALTA CT pour DirectMed pendant environ 12 à 18 mois. Les opérations de santé restantes, qui se concentrent principalement sur la fabrication et la réparation de tubes à rayons X CT, seront intégrées dans le segment déclarable PMT de l'entreprise.
Ce mouvement stratégique s'aligne sur l'objectif de Richardson de réaffecter des actifs pour soutenir son activité croissante de Solutions Énergétiques Vertes, la direction s'attendant à ce que la transaction simplifie les opérations et améliore leur modèle financier.
Richardson Electronics (NASDAQ: RELL) hat den strategischen Verkauf von Vermögenswerten seiner Geschäftseinheit Richardson Healthcare an DirectMed Imaging angekündigt. Die Transaktion, die am 24. Januar 2025 abgeschlossen wurde, umfasst einen 10-jährigen globalen Liefervertrag, in dem Richardson DirectMed mit reparierten Siemens CT-Röntgenröhren versorgt.
Das Unternehmen wird weiterhin ALTA CT-Röntgenröhren für DirectMed für einen Zeitraum von etwa 12-18 Monaten herstellen. Die verbleibenden Gesundheitsoperationen, die sich hauptsächlich auf die Herstellung und Reparatur von CT-Röntgenröhren konzentrieren, werden in den berichten Segment PMT des Unternehmens integriert.
Dieser strategische Schritt entspricht Richardsons Fokus auf die Umverteilung von Vermögenswerten zur Unterstützung ihres wachsenden Geschäfts mit grünen Energielösungen, wobei das Management davon ausgeht, dass die Transaktion die Abläufe vereinfacht und ihr Finanzmodell verbessert.
- Strategic asset reallocation to support fast-growing Green Energy Solutions business
- Secured 10-year global supply agreement for Siemens CT X-ray tubes
- Business simplification through consolidation of remaining healthcare operations into PMT segment
- Divestment of majority of healthcare business unit indicates exit from a significant business segment
Insights
The strategic divestiture of Richardson Healthcare represents a significant operational pivot that warrants careful analysis. The transaction encompasses three key elements that reshape RELL's business model:
1. Strategic Realignment: By divesting a majority of its healthcare assets while maintaining a 10-year exclusive supply agreement, RELL creates a dual benefit - immediate capital liberation while securing long-term revenue streams. This hybrid approach mitigates transition risks while potentially improving working capital efficiency.
2. Operational Optimization: The consolidation of remaining healthcare operations into the PMT segment signals a lean operational strategy. This integration should yield several benefits:
- Reduced overhead costs through shared resources
- Streamlined management structure
- Enhanced operational synergies in manufacturing and R&D
3. Growth Focus: The reallocation of resources toward Green Energy Solutions is particularly timely given the sector's robust growth trajectory and increasing government support for renewable technologies. This positions RELL to capitalize on the expanding green energy market while maintaining a foothold in healthcare through the supply agreement.
The 12-18 month manufacturing transition period for ALTA CT X-ray tubes demonstrates a thoughtful approach to business continuity, ensuring smooth customer transitions while gradually releasing operational capacity for green energy initiatives. This restructuring should improve RELL's financial profile by reducing operational complexity and focusing resources on higher-margin growth opportunities.
Majority of Richardson Healthcare Assets Sold to DirectMed Imaging
Remaining Healthcare Business to be Consolidated into the Company’s PMT Strategic Business Unit
LAFOX, Ill., Jan. 24, 2025 (GLOBE NEWSWIRE) -- Richardson Electronics, Ltd. (NASDAQ: RELL), a global provider of engineered solutions for renewable energy and other power management applications, today announced the strategic asset sale of a majority of Richardson Healthcare to DirectMed Imaging (“DirectMed”). The transaction closed on January 24, 2025.
Under the terms of the transaction, Richardson Electronics sold a substantial portion of the Richardson Healthcare reportable segment to DirectMed. Additionally, Richardson Electronics entered into an exclusive 10-year global supply agreement in which Richardson will supply DirectMed with repaired Siemens CT X-ray tubes. Richardson Electronics will also continue manufacturing ALTA CT X-ray tubes for DirectMed for approximately 12 to 18 months. The remaining assets and operations of the Richardson Healthcare reportable segment, primarily CT X-ray tube manufacturing and repair, will be consolidated into the Company’s PMT reportable segment.
“Today’s announcement is aligned with our strategic priorities by reallocating assets to support our fast-growing Green Energy Solutions business. We look forward to an ongoing partnership with DirectMed, which we believe is a win-win for both companies. In addition, we believe today’s announcement will simplify our business, improve our financial model, and allow us to prioritize profitable opportunities within our higher growth markets,” said Edward J. Richardson, Chairman, CEO, and President.
Additional information on the transaction will be found in an 8-K to be filed with the U.S. Securities and Exchange Commission.
FORWARD-LOOKING STATEMENTS
This release includes certain “forward-looking” statements as defined by the Securities and Exchange Commission. Statements in this press release regarding the Company’s business that are not historical facts represent “forward-looking” statements that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Item 1A, “Risk Factors” in the Company’s Annual Report on Form 10-K filed on August 5, 2024, and other reports we file with the Securities and Exchange Commission. The Company assumes no responsibility to update the “forward-looking” statements in this release as a result of new information, future events or otherwise.
About Richardson Electronics, Ltd.
Richardson Electronics, Ltd. is a leading global manufacturer of engineered solutions, green energy products, power grid and microwave tubes, and related consumables; power conversion and RF and microwave components, including green energy solutions; high-value replacement parts, tubes, and service training for diagnostic imaging equipment; and customized display solutions. Approximately
Richardson Electronics common stock trades on the NASDAQ Global Select Market under the ticker symbol RELL.
About DirectMed Imaging
DirectMed Imaging is a leading aftermarket diagnostic imaging parts, systems, and service provider. With over 100,000 parts in stock, the company repairs, supports, and sells GE, Siemens, Philips, and Canon/Toshiba MRI, CT, and X-ray parts to healthcare networks, imaging centers, and independent service organizations (“ISOs”) around the world. DirectMed also owns LBN Medical ApS, based in Aalborg, Denmark, a leading reseller of aftermarket medical imaging equipment and parts to customers around the world; and ScanMed, LLC, a leader in MRI coil design, manufacture, and repair. For more information, visit www.DirectMedImaging.com.
For Details Contact:
Wendy Diddell
Chief Operating Officer and GM, Richardson Healthcare
Phone: (630) 208-2323
wendyd@rell.com
Corporate Headquarters
40W267 Keslinger Road
PO BOX 393
LaFox, IL 60147-0393 USA
(630) 208-2200 | Fax: (630) 208-2550
FAQ
What assets did Richardson Electronics (RELL) sell to DirectMed Imaging in January 2025?
What is the duration and scope of the supply agreement between RELL and DirectMed?
How long will RELL continue manufacturing ALTA CT X-ray tubes for DirectMed?
What will happen to RELL's remaining healthcare operations after the DirectMed sale?
How does the DirectMed transaction align with RELL's strategic priorities?
