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Eastman Kodak Co. has reached an agreement with Brother Industries Ltd. for the proposed sale of assets of its Document Imaging business for a roughly $210 million.
The cash deal is subject to price adjustments at closing. In addition, Japan-based Brother will assume deferred service revenue liability of the business, which totaled some $67 million as of Dec. 31, the company said
The Kodak business provides a portfolio of scanners, capture software and services to enterprise customers. Brother is a leading global manufacturer of laser, label and multifunction printers, as well as fax machines and sewing machines.
Consummation of the deal is subject to court approval and a marketing period in which Kodak may seek to obtain a higher or better offer for the business, alone or in combination with other businesses, including through a court-approved auction, the company said. Kodak’s ability to continue to explore alternatives during the marketing period will ensure it obtains the maximum value for the business.
“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,” Chairman and CEO Antonio Perez said in a statement.
“A sale to Brother, should they prevail, would represent an excellent outcome for Document Imaging’s customers, partners and employees,” he said.
Under the terms of the agreement, Kodak will seek U.S. Bankruptcy Court approval of the bidding procedures at a hearing in late April and is targeting final court approval of a transaction in June.
Consistent with its previously stated goal of restructuring around its Commercial Imaging business, Kodak is continuing its sales process for its Personalized Imaging business.
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