May 10, 2013
The decision by Kodak to cancel its agreement to sell certain assets of its Digital Imaging business to Brother is a result of the OEM entering into an alternative agreement to sell both its Document Imaging business and Personalised Imaging business to the UK Kodak Pension Plan (KPP) for a sum of $650 million (€498.5 million).
In addition, the new agreement between Kodak and KPP is set to settle approximately $2.8 billion (€2.1 billion) of claims made against Kodak and a number of its affiliates by KPP.
Kodak’s agreement with Brother, announced on 15 April, would have seen the company selling its Document Imaging business for a price of $210 million (€161 million). While Kodak CEO Antonio M. Perez had commented that “a sale to Brother, should they prevail, would represent an excellent outcome for Document Imaging’s customers, partners and employees”, the OEM had stated that the agreement was subject to court approval and a marketing period in which Kodak may try to obtain a higher offer for the business.
Brother has stated that it will “consider its actions while it observes the development of this case”; maintaining that it “remains committed to its policy to execute strategic investments for M&A and business alliances in each business segment and region to achieve its mid-to long-term corporate vision, ‘Global Vision 21’” and that it “is determined to carry forward this policy more actively”.
Kodak recently announced its post-bankruptcy plans for the coming year, including the sale of its film and printing businesses to its UK pension fund and a new strategy to focus on selling printing equipment and services to businesses. The company also reported first quarter profits of $283 million (€214.5 million).
Categories : Around the Industry