Kodak to sell flexographic packaging division
Kodak is to sell its flexographic packaging division, allowing it to focus on environmental plates, enterprise inkjet, workflow software and brand licensing.
The division produces and markets the Flexcel NX system of flexographic imaging equipment, printing plates, consumables and related services. For the last 12 months, the division has reported revenues of US$150 million and operational EBITDA of US$33 million. During this period, it has demonstrated strong growth, achieving a nine percent increase in revenue and 18 percent operational EBITDA growth.
Kodak noted that during the sale process, it will continue to make significant investments by expanding manufacturing capacity, developing advanced technology and increasing headcount to meet customer needs.
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. The division 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 the right time to monetize this valuable asset.’
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.’
Post-sale, Kodak will focus on the demonstrated growth areas of Sonora environmental plates, enterprise inkjet, workflow software and brand licensing. Each of these businesses has delivered growth, profitability and strong margins, Kodak noted.
‘The company is well positioned for the future by leveraging these growth engines and continuing to maximise value in print systems, film and advanced materials,’ Kodak clarified in a statement.
