Latest News

Kodak to sell flexo packaging business

Tuesday, 14 August 2018
By Print21
Tagged with:

Kodak is selling its thriving Flexographic Packaging Division and will use the proceeds to repay outstanding debt as it shifts focus to other growth areas including Sonora litho environmental plates, inkjet and workflow.

‘The right time to monetize this valuable asset’: Kodak CEO Jeff Clarke.

“This is a great opportunity to unlock value for shareholders given the strong interest we have received in the Flexographic Packaging Division (FPD),” said Kodak CEO Jeff Clarke.

“FPD has performed exceptionally well over the past five years and has become a significant player in the industry,” Clark said. “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.”

Over the last year, FPD reported a 9% jump in revenue to $US150 million and an 18% increase in earnings before tax to $US33 million. FPD currently employs a staff of about 300 people.

Flexo plates are widely used in packaging print production on a variety of substrates, including plastic, metallic films, cellophane, and paper. Kodak’s flexo division produces the Flexcel NX system of flexo imaging equipment, printing plates, consumables and related services.

Following the sale, Kodak will continue to focus on growth areas including Sonora environmental plates, enterprise inkjet, workflow software and brand licensing.

“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,” said Clarke.

Kodak also announced it’s signed a letter of intent for a $US400 million,18-month loan with an existing lender to refinance its existing term debt, which would permit the company to “pursue the sale process of FPD in a thoughtful manner in order to achieve maximum value for shareholders.”

3 Responses to “Kodak to sell flexo packaging business”

  1. August 16, 2018 at 2:54 pm,

    Ian Hair
    said:

    Another strategic step by Kodak to turn a once major and important graphics company to one of irrelevance.

  2. August 16, 2018 at 4:06 pm,

    Banksy
    said:

    I wonder how the blockchain is going.

  3. August 17, 2018 at 10:22 am,

    Fairgo
    said:

    Banksy, send me $1,000 to my Bermuda account and I’ll show ya!

Comment on this article


To receive notification of comments made to this article, you can also provide your email address below.