US-based firm Kodak is planning to sell its Flexographic Packaging Division (FPD), in an effort to reduce debt.
Image: Kodak building. Photo: courtesy of Eastman Kodak Company.
As part of this effort, the firm has engaged UBS Investment Bank as its financial adviser for the transaction.
FPD is engaged in producing and marketing of KODAK FLEXCEL NX Systems and Plates as well as other packaging products, such as analog flexographic plates and letterpress plates, proofing products and services.
Flexography printing uses flexible plates to print on a wide variety of packaging substrates, including plastic, metallic films, cellophane, and paper.
Featuring imaging technology, the FLEXCEL NX platform is designed to provide consistent, high-quality print with maximum on-press efficiency across the full gamut of flexography applications.
Kodak plans to make significant investments in FPD during the sale process, by expanding manufacturing capacity, developing advanced technology and increasing employment.
Kodak CEO Jeff Clarke said: “This is a great opportunity to unlock value for shareholders given the strong interest we have received in the Flexographic Packaging Division. FPD has performed exceptionally well over the past five years and has become a significant player in the industry.
“This business is an excellent example of Kodak incubating and bringing disruptive innovation to the marketplace. Kodak has been evaluating monetization opportunities for the last several years in order to deleverage the company and we believe this is right time to monetize this valuable asset,”
Proceeds from the sale are planned to be used by Kodak to repay its outstanding debt.
Clarke added: “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.”
The sale is a part of the firm’s plan to focus on demonstrated growth areas of SONORA environmental plates, enterprise inkjet, workflow software and brand licensing.