Headquartered in Rochester, NY, Eastman Kodak Company recently entered into an agreement with leading private equity firm Montagu Private Equity LLP to sell its Flexographic Packaging Division for the sum of $390 million, spread over several components including a $340 million base purchase price.
President of the Flexographic Packaging Division Chris Payne will continue on, taking on the role of CEO as he leads the new standalone company which reportedly will develop, produce and market the KODAK FLEXCEL NX System along with other flexographic products to the packaging print segment.
News reports claim the Flexographic Packaging Division is a prime example of how Kodak, a company founded 130 years ago in 1888, is capable of delivering disruptive innovation to the packaging print industry. This segment of the Kodak company has become a key player in the packaging print sector in recent years as it has expanded and prospered within the company. According to reports, the same management team will continue to grow the flexographic packaging efforts under new ownership.
Kodak CEO Jeff Clarke said that as Kodak uses the net proceeds from the transaction to reduce outstanding term debt, it is a vital turning point in the company’s reorganization and a positive development for Kodak as it will strengthen the company’s financial position and unlock value for shareholders. In addition to the $340 million base purchase price, Kodak anticipates receiving up to $35 million in potential earn-out payments through 2020 based on specific criteria and $15 million on closing from Montagu as pre-payment for products and services Kodak will provide after the deal closes.
Kodak will file the agreement with Montagu with the SEC on November 13th; the deal is expected to close at some point during the first half of 2019.
REA JET U.S. is a leading provider of industrial coding and marking systems for various industries including wood, packaging, building materials and tag and label. Our high resolution ink jet and large character DOD ink jet coding technologies are unsurpassed in the industry. Count on REA JET for all of your printing equipment needs.