Eastman Kodak Company ([stock]EK[/stock]) recently sold its microfilm products and equipment business to Eastman Park Micrographics Inc. The financial terms of the deal were not disclosed.
As per the agreement, the company will continue supplying current microfilms, service and support for microfilm equipment. Furthermore, Eastman Park Micrographics will acquire Kodak’s North Carolina-based data conversion services business, which converts data to analog and digital formats.
Consequently, Kodak’s employees in Rochester and North Carolina, who are related to the divested business, will join the acquirer company. Eastman Park Micrographics will continue to operate the data conversion services business in North Carolina and for micrographics business it plans to lease space in Kodak’s Rochester based Eastman Business Park.
This divesture will support Kodak in transforming itself into a digital company and generate funds by selling non-core assets.
Management clarified that the sale does not include Kodak’s Document Imaging business, a provider of innovative document capture products, software and services.
In March, the company completed the acquisition of the relief plates business of Tokyo Ohka Kogyo Co. Ltd. (TOK). TOK’s relief plate business provides flexography, letterpress, Braille, molding plate products and other products.
According to the terms of the agreement, TOK transferred its manufacturing plant located in Yamanashi Prefecture to Kodak, which now forms a part of Kodak’s Prepress Solutions business, known as Yamanashi RPB Supply Company.
Management expects the acquisition to enhance Kodak’s capabilities of serving customers, especially in the packaging industry. The acquisition will also support Kodak in achieving its target of doubling revenues of delivering solutions for the packaging industry by 2012.
Kodak operates in a highly competitive market, with intense competition for digital products, films and services. The company faces stiff competition from Canon Inc. ([stock]SNE[/stock]) and FUJIFILM Holdings Corp.
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