Kodak to sell Flexographic Packaging Division

PrintAction Staff
August 14, 2018
By PrintAction Staff
Kodak announced last week it has begun a process to sell its Flexographic Packaging Division (FPD). The company has engaged UBS Investment Bank as its financial adviser for the transaction.

FPD produces and markets the Flexcel NX system of flexographic imaging equipment, printing plates, consumables and related services. For the last 12 months, FPD reported revenues of $150 million and Operational EBITDA of $33 million. During this period, FPD achieved a nine percent increase in revenue and 18 percent Operational EBITDA growth. FPD currently employs a staff of approximately 300 people.

During the sale process, Kodak says it will continue to make “significant investments” in FPD by expanding manufacturing capacity, developing advanced technology and increasing its headcount to meet customer needs.

“This is a great opportunity to unlock value for shareholders given the strong interest we have received in the Flexographic Packaging Division. FPD has performed exceptionally well over the past five years and has become a significant player in the industry. This business is an excellent example of Kodak incubating and bringing disruptive innovation to the marketplace. Kodak has been evaluating monetization opportunities for the last several years in order to deleverage the company and we believe this is the right time to monetize this valuable asset,” says Kodak CEO Jeff Clarke.

Clarke says the improved capital structure following the transaction will allow Kodak to increase its focus on demonstrated growth engines, while continuing to invest in and provide solutions across the commercial printing, film, and advanced materials industries.

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