Kodak Completes Sale of Business Unit to Private Equity

On April 9th, the Eastman Kodak Company announced it completed the sale of its Flexographic Packaging Division (FPD) to Montagu Private Equity.

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 the close were approximately $320 million, which included the gross purchase price of $340 million minus debt, 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. Kodak expects to refinance the remaining outstanding term debt.

Over the past five years, Kodak says 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 Kodak Executive Chairman Jim Continenza. “This is one of many steps we are taking to increase our financial stability and focus on generating cash for our shareholders.”

Kodak says it 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 SONORA environmental plates, enterprise inkjet, workflow software, and brand licensing. The company says it’s well positioned for the future by leveraging these growth areas and by continuing to maximize value in commercial printing, film, and advanced materials.

More Resources

• April 2019: Kodak Reports Loss for Fiscal Year
• February 2019: New Executive Chairman for Kodak
• January 2019: Kodak Announces Reorganization, Executive Appointments
• January 2019: Kodak May Be Next to Receive Tariff Exclusions
• January 2019: Kodak Previews New ‘Smile’ Photo Cameras, Mobile Printer at CES
• August 2018: Kodak Reports Earnings for Second Quarter, Issues ‘Going Concern Assessment’
• May 2018: Kodak Reports First-Quarter 2018 Results
• November 2017: Kodak Introduces First 3D Printer, the Portrait 3D Printer