Kodak Selling Doc Imaging Biz to Brother for $210M
ROCHESTER, N.Y., April 16, 2013 — Eastman Kodak Co. plans to sell certain assets of its Document Imaging business to Brother Industries Ltd. for $210 million in cash, subject to court approval. Brother also will assume deferred service revenue liability of the business, which totaled about $67 million as of Dec. 31, 2012.
The imaging unit provides a comprehensive portfolio of scanners, capture software and services to enterprise customers. Brother manufactures laser, label and multifunction printers, and fax and sewing machines.
Under the terms of the agreement, Kodak will seek US Bankruptcy Court approval of the bidding procedures at a hearing in late April and is targeting final court approval of a transaction in June. The company may explore alternatives during the marketing period to ensure that it obtains the maximum value for the business.
“This proposed sale is another key step in Kodak’s path to emergence — it moves us closer to realizing our strategic vision for Kodak’s future,” said Chairman and CEO Antonio M. Perez. “A sale to Brother, should they prevail, would represent an excellent outcome for Document Imaging’s customers, partners and employees.”
Dolores Kruchten, president of Document Imaging, said Kodak will work throughout the sale process to ensure a smooth transition for customers.
Consistent with its previously stated goal of restructuring around its Commercial Imaging business, Kodak is continuing its publicly announced sales process for its Personalized Imaging business.
Lazard is serving as the financial adviser to Kodak and Sullivan & Cromwell is the lead legal adviser to Kodak in the transaction.
For more information, visit: www.kodak.com
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