Kodak selling Flexographic Packaging Division to Montagu

Eastman Kodak Company has agreed to sell its Flexographic Packaging Division to Montagu Private Equity, a Europe-based private equity firm, Kodak announced Nov. 12. The business will operate as a standalone company that will develop, manufacture and sell flexographic products, including the flagship Kodak Flexcel NX System, to the packaging print segment.

Under its new ownership, the business will have the same organizational structure and management team that has served Kodak’s Flexographic Packaging Division in recent years, the company said. Chris Payne, who has served as president of the Flexographic Packaging Division for the last three years, will lead the new company as CEO.

Kodak expects to receive total value of up to $390 million from the sale, the company says. The transaction is expected to close in the first half of 2019, subject to regulatory approvals. 

“Over the past five years, the Flexographic Packaging business has grown and thrived within Kodak and has become a significant player in the packaging print industry,” said a news release from Kodak on the sale.

Proceeds from the transaction will be used by Kodak to reduce outstanding term debt, Kodak says.

“Following this transaction, Kodak will continue to focus on the demonstrated growth areas of Sonora environmental plates, enterprise inkjet, workflow software and brand licensing,” the release says. 

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