In a deal worth $817M, Eastman Kodak will become the sole owner of Kodak Polychrome Graphics through redemption of Sun Chemical Corp’s 50 per cent interest in the joint venture. Each company currently owns half of KPG, which was established in 1998.
Daniel A Carp, chairman and ceo of Eastman Kodak, says: “This is another decisive step in the implementation of our digitally oriented growth strategy and strengthens Kodak’s ability to compete in the fastest growing segments of the industry.”
KPG revenues for 2004 are expected to be $1.7 billion. Kodak expects the transaction to add some $1.1 billion to its revenue in 2005, reflecting approximately nine months of Kodak ownership, and the elimination of inter-company sales from Kodak to KPG. In 2006, it expects approximately $1.4 billion of incremental revenue, reflecting a full year of ownership and the elimination of inter-company sales.
Based in Norwalk, Connecticut, KPG is one of the world’s leading suppliers to the graphic communications market, with approximately 4,000 employees worldwide. The management team will remain intact.
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