Eastman Kodak Company has completed sale of its flexographic packaging division to Montagu Private Equity in a deal worth $340m.
The flexographic packaging division will now operate under Montagu as a standalone company known as Miraclon with the same organizational structure, and management team.
The division is engaged in the development, manufacturing and marketing of flexographic products to the packaging print segment.
Kodak executive chairman Jim Continenza said: “Closing this sale was a priority for Kodak, and I’m proud we were able to execute on this plan and leverage a homegrown asset.
“This is one of many steps we are taking to increase our financial stability and focus on generating cash for our shareholders.”
Proceeds from the sale of the division will be used by Kodak to reduce outstanding term debt and refinance the remaining outstanding term debt.
The firm said: “Proceeds at close were approximately $320 million, which included the gross purchase price of $340 million less agreed indebtedness, other items, and delayed proceeds related to a deferred close entity.”
Kodak’s Flexo business provides imaging technologies for the graphics customization of printed packaging materials, and produces flexographic plate imaging system, called Kodak Flexcel NX, which helps in delivering better image resolution quality.
The deal to acquire the flexographic packaging division was signed in November 2018.
At that time, Montagu investment director Christoph Leitner-Dietmaier said: “Kodak’s Flexo business is well positioned to benefit from the exceptional growth in the packaging printing market.
“The company’s proprietary ‘Thermal Imaging Film’ technology enables them to offer a truly differentiated product that consistently produces high performing output.”
Kodak said it will continue to concentrate on the areas of Sonora environmental plates, enterprise inkjet, workflow software and brand licensing.
Flexography is a form of packaging printing, which is used to apply images on any substrate, including flexible packaging.
Kodak appointed UBS Investment Bank as exclusive financial advisor and Akin Gump Strauss Hauer & Feld as legal advisor for the deal.