Olympus divests camera division

Olympus sells its camera division to investment firm Japan Industrial Partners. Olympus’ Imaging business has been loss-making for years and the company hopes that the division can become more efficient on its own.

Olympus’ camera division will become a standalone company owned by Japan Industrial Partners. The final sale agreement must be signed on September 30. Olympus reports that the reason is “extremely bad” market conditions for digital cameras. That market has shrunk considerably due to the arrival of smartphones with good cameras.

The Japanese company says it has reorganized to reduce costs and targeted the interchangeable-lens camera market to increase revenue and turn the tide. This would not have the desired effect, as Olympus’ Imaging division still recorded losses for three years in a row.

The company hopes that a compact, efficient and flexible company that operates independently can grow again in the camera market. Olympus produced its first camera with a Zuiko lens in 1936. The company was founded in 1919 and then produced microscopes and thermometers. Since 2012, the company has focused on the production of milcs, or mirrorless interchangeable-lens cameras. In addition to cameras, Olympus makes products, mostly optical instruments, for the industrial market, laboratories and healthcare.