Kodak completes sale of its Flexographic Packaging Division to Montagu
April 09 2019 - 5:00AM
Business Wire
New company Miraclon to meet packaging
industry needs with KODAK FLEXCEL Solutions
Today Eastman Kodak Company and Montagu Private Equity LLP
announced the completion of the sale of Kodak’s Flexographic
Packaging Division (FPD). Now part of Montagu’s portfolio, the
division operates as a standalone company known as Miraclon. As
previously announced, Kodak’s flexographic leadership team has
transitioned as part of the deal and will continue to directly
manage this business.
Proceeds at close were approximately $320 million, which
included the gross purchase price of $340 million less agreed
indebtedness, other items, and delayed proceeds related to a
deferred close entity.
The net proceeds from the transaction will be used by Kodak to
reduce outstanding term debt. The Company expects to refinance the
remaining outstanding term debt.
Over the past five years, FPD has grown and thrived within Kodak
and become a significant player in the package printing
industry.
“Closing this sale was a priority for Kodak, and I’m proud we
were able to execute on this plan and leverage a homegrown asset,”
said Jim Continenza, Executive Chairman of Kodak. “This is one of
many steps we are taking to increase our financial stability and
focus on generating cash for our shareholders.”
Kodak remains committed to the print industry and delivering
products and services that meet the evolving needs of printers.
Following this transaction, Kodak will continue to focus on the
demonstrated growth areas of SONORA environmental plates,
enterprise inkjet, workflow software and brand licensing. The
Company is well positioned for the future by leveraging these
growth engines and continuing to maximize value in commercial
printing, film and advanced materials.
UBS Investment Bank acted as 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.
About Kodak
Kodak is a technology company focused on imaging. We provide –
directly and through partnerships with other innovative companies –
hardware, software, consumables and services to customers in
graphic arts, commercial print, publishing, packaging,
entertainment and commercial films, and consumer products markets.
With our world-class R&D capabilities, innovative solutions
portfolio and highly trusted brand, Kodak is helping customers
around the globe to sustainably grow their own businesses and enjoy
their lives. For additional information on Kodak, visit us at
kodak.com, follow us on Twitter @Kodak, or like us on Facebook at
Kodak.
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version on businesswire.com: https://www.businesswire.com/news/home/20190409005268/en/
Media:For Kodak: Nick Rangel, +1 585-615-0549,
nicholas.rangel@kodak.com
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