Richardson Electronics Announces Strategic Transaction for its Richardson Healthcare Business Unit

Core Points - Richardson Electronics has sold a majority of its Richardson Healthcare assets to DirectMed Imaging, with the transaction closing on January 24, 2025 [1][2] - The sale includes a substantial portion of the Richardson Healthcare reportable segment, along with a 10-year global supply agreement for Siemens CT X-ray tubes [2] - The remaining healthcare operations will be consolidated into the PMT reportable segment, focusing on CT X-ray tube manufacturing and repair [2][3] Company Strategy - The transaction aligns with the company's strategic priorities by reallocating assets to support the growth of its Green Energy Solutions business [3] - The CEO emphasized that the partnership with DirectMed is mutually beneficial and will simplify the business model while prioritizing profitable opportunities in higher growth markets [3] Company Overview - Richardson Electronics is a global manufacturer of engineered solutions, including green energy products and diagnostic imaging equipment [6] - The company serves various markets, including healthcare, alternative energy, and industrial sectors, with approximately 50% of its products manufactured in the U.S. and Germany [6] DirectMed Imaging Overview - DirectMed Imaging is a leading provider of aftermarket diagnostic imaging parts and services, with a large inventory of over 100,000 parts [8] - The company supports major brands like GE, Siemens, Philips, and Canon/Toshiba in the healthcare sector [8][9]