Not exactly sure of the strategy behind this, but here's my guess:
1. Document imaging is not printing, so it's not core to Kodak's future direction
2. Kodak is not getting as much money as it hope from the sale of the digital imaging patent portfolio, so they need to raise some additional money to pay off debts
3. Kodak Document Imaging (including the service business) is a healthy, profitable entity that Kodak can get $1 billion? for.
What do you think?
From a press release that was issued today, ".... [Kodak] has initiated sale processes for its market-leading Personalized Imaging and Document Imaging businesses."
Also from the press release: “The initiation of a process to sell the Personalized Imaging and
Document Imaging businesses is an important step in our company’s
reorganization to focus our business on the commercial markets and
enable Kodak to accelerate its momentum toward emergence,” said Antonio
M. Perez, Chairman and CEO.
"Kodak said it would move forward as quickly as possible and has targeted
completing these transactions in the first half of 2013."
So, who are the potential buyers?
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12 comments:
Xerox? I know Xerox Services aka ACS uses Kodak machines extensively.
Xerox would be a great buyer I think. Thanks for the feedback.
EPM why not ?
What is EPM?
EPM is Eastman Park Micrographics which bought micrographics division from Kodak Document Imaging in 2011 .
Right, of course, I knew that. EPM is certainly a candidate. With annual revenue north of $450 million it would certainly be quite a big undertaking for them, but certainly a possibility.
Any news?
Any news about the buyer?
No news on a buyer, expecting something in the next couple months. Now that imaging patent porfolio has been sold for $525 million, it should help set the price that Kodak needs to get for DI.
From a recent report appearing on Rochesterhomepage.net:
"According to insiders, executives also said they were working to resolve its UK pension problems but did say that the document and imaging businesses which are up for sale may be struggling a bit.
"'It sounds to us that management is trying to prep employees that they may not have an easy time in meeting that third condition which is the sale of those businesses so they can get their loan,' said George Conboy, President of Brighton Securities.
"Kodak is hoping to secure a $380 million loan to help it emerge from bankruptcy.
"To get it, the company needs to sell those patents for at least $500 million and successfully sell its document and imaging businesses.
"Kodak has a 10am hearing in U.S. Bankruptcy Court in Manhattan on Friday."
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