Ten years after introducing the Flexcel NX platemaking system, Kodak is putting its Flexographic Packaging Division up for sale. The proceeds from the sale will be used to pay off outstanding debts.
Employing around 300 staff, Kodak’s profitable Flexographic Packaging Division (FPD) produces and markets the Flexcel NX system of imaging equipment, printing plates, consumables and related services. For the last 12 months, it has achieved a revenue growth of 9%.
The company’s intent during the sale process is ‘to continue to make significant investments in FPD by expanding manufacturing capacity, developing advanced technology and increasing its headcount to meet customer needs.’
‘This is a great opportunity to unlock value for shareholders given the strong interest we have received in the Flexographic Packaging Division,’ said CEO Jeff Clarke. ‘FPD has performed exceptionally well over the past five years and has become a significant player in the industry. Kodak has been evaluating monetisation opportunities for the last several years in order to deleverage the company and we believe this is the right time to monetise this valuable asset.’
He continued, ‘Following this transaction, Kodak’s improved capital structure will allow us to increase our focus on demonstrated growth engines, while continuing to invest in and provide solutions across the commercial printing, film and advanced materials industries.’
Kodak also announced it had arranged for a $400 million, 18-month loan with an existing lender, which would refinance its existing term debt during the sale process.
