Monday, August 20, 2018

Kodak selling flexographic packaging division


Kodak announced Aug. 9 that it has begun a process to sell its Flexographic Packaging Division. 

The division produces and markets the FLEXCEL NX system of flexographic imaging equipment, printing plates, consumables and related services.

For the last twelve months, FPD reported revenues of $150 million and operational EBITDA of $33 million. During this period, FPD has demonstrated strong growth, achieving a 9 percent increase in revenue and 18 percent operational EBITDA growth, according to the company. 

FPD currently employs a staff of approximately 300 people.
 
During the sale process, Kodak will continue to make significant investments in FPD, including increasing its headcount to meet customer needs, the company says.

Kodak also announced it had entered into a non-binding letter of intent for a $400 million, 18-month loan with an existing term loan lender which would refinance its existing term debt, which would permit the company to pursue the sale process of FPD in a manner to get maximum value for shareholders, Kodak said.

Net proceeds from the sale of FPD will first be used to repay this loan.


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