UK-based private equity firm Montagu Private Equity has agreed to purchase the flexographic packaging division of U.S.-based technology company Eastman Kodak Co.
Under the terms of the deal, Kodak expects to receive the total value of up to $390 million. The deal unlocks value for Kodak's shareholders and strengthens its financial position by providing a meaningful infusion of cash which allows reducing debt, improving its capital structure and enabling greater flexibility to invest in its growth engines.
Following this deal, Kodak will continue to focus on the demonstrated growth areas of Sonora environmental plates, enterprise inkjet, workflow software and brand licensing. Under its new ownership, the business will have the same organizational structure, management team and growth culture that it has operated in recent years.
After closing, which is expected in the first half of 2019, the flexographic business will operate as a new standalone company which will develop, manufacture and sell flexographic products, including the flagship Kodak Flexcel NX System, to the packaging print segment.