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The U.S. Bankruptcy Court on Friday approved a deal between Eastman Kodak Co. and CVS/pharmacy that extends the firms’ relationship for four years, Kodak said.
Kodak had announced Nov. 16 the extension with CVS/pharmacy, which is the largest customer of Kodak’s Retail Systems Solutions business. RSS is the global leader in retail print products and services with 105,000 Kodak Picture Kiosks, Kodak said.
RSS is part of Kodak’s Personalized Imaging business, which the company is trying to sell.
Because the agreement resolves certain pre-chapter 11 issues between the two companies, it was brought before the court for approval at Friday’s hearing, Kodak said.
“This four-year extension of our relationship is great news for both companies and for consumers who enjoy our services,” said Laura Quatela, president of Kodak and Personalized Imaging, in a statement.
The deal extends through 2016 Kodak’s relationship with CVS/pharmacy, the retail division of CVS Caremark Corp. CVS/pharmacy operates 7,400 stores across the country. Its stores have more than 15,000 Kodak kiosks.
As part of the agreement, CVS/pharmacy will be upgrading and expanding its fleet of Kodak Adaptive Picture Exchange dry lab systems.
“As we proceed with the sale process for the Personalized Imaging business, which includes RSS, this agreement is further proof of customer demand for Kodak’s market-leading products and services—and potential buyers recognize this,” Quatela said when the deal was announced. “We remain strongly committed to providing our customers with the high level of service we always have.”
Kodak in August announced plans to sell both its Personalized Imaging and Document Imaging businesses. The company said it aimed to complete the transactions in the first half of 2013.
The Personalized Imaging business consists of RSS, Paper & Output Systems and Event Imaging Solutions. Kodak in August reported the segment generated $1.3 billion in revenues in 2011 and projected its sales would dip to $1.1 billion this year.
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