Kodak reaches agreement with Montagu for sale of Flexographic Packaging Division

Jeff Clarke, CEO, Kodak

NY-based Eastman Kodak Company has announced that information technology has entered into a definitive agreement to sell its Flexographic Packaging Division to Montagu Private Equity LLP, a leading private equity firm. After the deal closing, the business organisation volition operate equally a new standalone visitor which will develop, manufacture and sell flexographic products, including the flagship Kodak Flexcel NX systems, to the packaging print segment.

Nether its new ownership, the business will take the same organizational structure, management team and growth civilisation that has served Kodak's Flexographic Packaging Sectionalisation well in recent years. Chris Payne, who has served as president of the Flexographic Packaging Partition for the final iii years, will lead the new company equally CEO.

Kodak'southward Flexographic Packaging Partitioning is an case of Kodak incubating and bringing disruptive innovation to the marketplace. Over the by five years, the flexographic packaging business concern has grown and thrived within Kodak, and has go a significant thespian in the packaging impress manufacture. The business organisation will be well-positioned to continue delivering solutions to maintain profitable growth for printers in the packaging sector and remain at the leading edge of flexographic print production.

Kodak expects to receive total value of up to US$ 390 one thousand thousand (approximately Rs. 2,800 crore), comprised of the post-obit components: (1) base purchase price of US$ 340 million, subject field to purchase price adjustments; (two) potential earn-out payments of up to U.s.$ 35 million over the period through 2022 based on achievement past the business organisation of agreed-upon operation metrics; and (3) United states$ 15 meg payable by Montagu to Kodak at the closing equally a prepayment for various services and products to be provided past Kodak to the business concern postal service-closing pursuant to commercial agreements, subject to completion of certain pledge and collateral arrangements.

The net proceeds from the transaction will be used by Kodak to reduce outstanding term debt. The Visitor expects that the remaining outstanding term debt will exist refinanced and/or repaid using cash proceeds from additional asset monetizations. "This transaction is an important turning point in our transformation and is a significant, positive development for Kodak," said Jeff Clarke, CEO, Kodak. "The sale of the Flexographic Packaging Sectionalization unlocks value for shareholders and strengthens our financial position by providing a meaningful infusion of greenbacks which allows us to reduce debt, improving the capital structure of the company and enabling greater flexibility to invest in our growth engines."

Kodak remains committed to the print industry and delivering products and services which see the evolving needs of printers. Following this transaction, Kodak volition continue to focus on the demonstrated growth areas of Sonora environmental plates, enterprise inkjet, workflow software and brand licensing. The visitor is well-positioned for the future by leveraging these growth engines and continuing to maximize value in commercial printing, motion-picture show and advanced materials.

The transaction is expected to close in the first one-half of 2019, bailiwick to the receipt of required regulatory approvals and satisfaction of closing conditions. UBS Investment Bank acted equally exclusive financial advisor and Akin Gump Strauss Hauer & Feld LLP acted as legal advisor to Kodak for the transaction. Ernst & Young acted as financial advisor, Bain & Co. acted as commercial advisor and Linklaters LLP acted as legal advisor to Montagu for the transaction. Kodak's understanding with Montagu, which is available at http://investor.kodak.com/investor-relations, will be filed with the SEC upon the re-opening of the EDGAR arrangement on thirteen November 2018.

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