Posts Tagged ‘Chapter 11’

  • Kodak picks up speed and cash ahead of its Chapter 11 exit

    A $210 million sale of Kodak’s Document Imaging division to Brother sharpens the definition of the company as a graphic arts manufacturer when it emerges from bankruptcy protection in the middle of the year.

    The sale, which has yet to be approved by the court, will enhance Kodak’s focus on its core commercial imaging business as it shakes off a decade of change and losses. It is part of a strategy to reshape the iconic brand as a B2B enterprise centred on commercial, packaging and functional printing solutions.

    Flagged for sale early in the year, the Document Imaging division represents approximately 10 per cent of Kodak Australia’s $100 million annual revenue. According to Adrian Flemming, managing director, there are no surprises in the announcement. “We’ve been working towards getting Document Services ready for sale since it was announced in January. Most business is done through distributors so there are relatively low numbers of employees involved,” he said.

    In recent months Kodak sold off $527 million digital imaging patents as part of its transformation process. In addition to the printing businesses Kodak continues to own and operate consumer inkjet, entertainment imaging, commercial film and specialty chemicals businesses. It is currently in the process of selling its personalised imaging business.

    'No surprises' … Adrian Fleming, managing director, Kodak Australia

    The Document Imaging business comprises of a range of scanners, capture software and services Kodak sells to enterprise customers. Brother is a leading global manufacturer of laser, label and multi-function printers, as well as fax machines and sewing machines.

    “This proposed sale is another key step in Kodak’s path to emergence – it moves us closer to realizing our strategic vision for Kodak’s future,” said Antonio M. Perez, Chairman and Chief Executive Officer. “A sale to Brother, should they prevail, would represent an excellent outcome for Document Imaging’s customers, partners and employees.”

    “Document Imaging has many differentiating strengths, including an outstanding global customer base, award-winning software and hardware solutions, strategic reseller partners and a comprehensive service and support network,” Perez said.

    Dolores Kruchten, President of Document Imaging, said that Kodak will work throughout the sale process to ensure a smooth transition for customers.

    “We are pleased that under this agreement with Brother, Document Imaging will continue to strengthen its position as a leader of information capture and management solutions for enterprise customers,” said Kruchten. “Our valued customers will receive the highest quality products, world-class customer service and reseller support that have been the hallmarks of our business.”