Thursday, October 2, 2025
FlexiblesKodak reaches agreement with Montagu for sale of its...

Kodak reaches agreement with Montagu for sale of its FBD

-

Kodak reaches agreement with Montagu for sale of its FBD

-

Kodak has entered into a definitive agreement to sell its Flexographic Packaging Division (FBD) to Montagu Private Equity, a leading private equity firm. After closing, the business will operate as a new standalone company whichwill 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, management team and growth culture that has served Kodak’s Flexographic Packaging Division well in recent years. 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’s Flexographic Packaging Division is an excellent example of Kodak incubating and bringing disruptive innovation to the marketplace. 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. The business will be well-positioned to continue delivering solutions to maintain profitable growth for printers in the packaging sector and remain at the leading edge of flexographic print production.

Kodak expects to receive total value of up to $390 million, comprised of the following components: (1) base purchase price of $340 million, subject to purchase price adjustments; (2) potential earn-out payments of up to $35 million over the period through 2020 based on achievement by the business of agreed-upon performance metrics; and (3) $15 million payable by Montagu to Kodak at the closing as a prepayment for various services and products to be provided by Kodak to the business post-closing pursuant to commercial agreements, subject to completion of certain pledge and collateral arrangements.

The net proceeds from the transaction will be used by Kodak to reduce outstanding term-debt. The company expects that the remaining outstanding term-debt will be refinanced and/or repaid using cash proceeds from additional asset monetizations.

“This transaction is an important turning point in our transformation and is a significant, positive development for Kodak,” said Jeff Clarke, CEO, Kodak. “The sale of the Flexographic Packaging Division unlocks value for shareholders and strengthens our financial position by providing a meaningful infusion of cashwhich allows us to reduce debt, improving the capital structure of the Company and enabling greater flexibility to invest in our growth engines.”

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 company is well-positioned for the future by leveraging these growth engines and continuing to maximize value in commercial printing, film and advanced materials.

The transaction is expected to close in the first half of 2019, subject to the receipt of required regulatory approvals and satisfaction of closing conditions.

Mahan Hazarika
Mahan Hazarika
Mahan Hazarika assumes the role of Editor at The Packman, a position he has held since 2017, reflecting a distinguished decade-long tenure specializing in journalism within the printing and packaging sectors. Beyond his professional realm, he nurtures a deep appreciation for music, travel, and films, finding inspiration and relaxation in these pursuits.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Latest news

Siegwerk, Borouge, and TPN Food Packaging launch recyclable mono-material packaging solution

Siegwerk, one of the leading global providers of printing inks and coatings for packaging applications and labels; Borouge, a...

Sonipat’s Shree Jee Printers invests in new Komori

A complete house of printing, Sonipat (Haryana)-based Shree Jee Printers serves clients considerably in the publishing and packaging segments....

Morris Packaging and UFlex forge strategic partnership to deliver sustainable woven bag series

Morris Packaging and UFlex Packaging have announced a new partnership in the woven bag series that further strengthens their...

PPL Nigeria – an Indian story beyond boundaries

Established in 2011, Perfect Packaging – the brainchild of Yudhviram Solanki, with the distinction of being the first manufacturer...
- Advertisement -spot_img

London Packaging Week partners with Vital Hardware

London Packaging Week has partnered with charity Vital Hardware in its continuing mission to uplift and shine a spotlight...

Indian buyer invests in Wanjie India’s label press at Labelexpo Europe 2025

At Labelexpo Europe 2025 held at Barcelona in Spain, Wanjie India marked a remarkable presence alongside its parent company...

Must read

Pentawards 2023 winners announced

The winners of this year’s prestigious Pentawards were revealed...

Syntegon introduces Pack 202 flow wrapper

Syntegon Technology has launched the next generation of flow...

You might also likeRELATED
Recommended to you