Kodak to sell document imaging assets to Brother for $210 mn
16 Apr 2013
Bankrupt US photographic icon Eastman Kodak Co yesterday agreed to sell some of its document imaging assets to Japan's Brother Industries Ltd, for about $210 million.
Brother will also assume deferred service revenue liability of the business, which is around $67 million as of 31 December 2012.
The deal comes after Kodak agreed to sell its digital imaging patents to global technology giants, including Apple Inc, Google Inc, Microsoft Corp, Research In Motion Ltd and others, for about $525 million. (See: Kodak sells imaging patents for $525 mn)
The Rochester, New York-based company's document imaging business comprises a portfolio of scanners, capture software and services to enterprise customers, which will be integrated with Brother's laser, label, and multi-function printers.
Brother is a leading global manufacturer of laser, label and multi-function printers, as well as fax machines and sewing machines.
Closing of the deal is subject to court approval and a marketing period in which Kodak may seek to obtain a higher or better offer from competing companies, or through a court-approved auction.
''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,'' said Antonio Perez, chairman and CEO of Kodak. ''A sale to Brother, should they prevail, would represent an excellent outcome for Document Imaging's customers, partners and employees.''
Under the terms of the agreement, Kodak will seek US Bankruptcy Court approval of the bidding procedures at a hearing in late April and is targeting final court approval of a transaction in June.
''Document Imaging has many differentiating strengths, including an outstanding global customer base, award-winning software and hardware solutions, strategic reseller partners and a comprehensive service and support network,'' Perez said.
Kodak, the 132-year old company which once ruled the world of photography, had in January 2012 filed for chapter 11 bankruptcy protection. It had debt of $6.75 billion and assets worth $5.1 billion.
In November 2012, the beleaguered company received an $830-million lifeline to come out of bankruptcy, under the condition that Kodak would sell part of its massive portfolio of patents for at least $500 million.
