- March 08, 2004, PRESS RELEASE
ROCHESTER, NY, USA—Eastman Kodak Company reports it has agreed to acquire two lines of business from Heidelberger Druckmaschinen AG. According to Kodak, it will purchase Heidelberg's 50 percent interest in NexPress Solutions LLC, a 50/50 joint venture of Kodak and Heidelberg that makes digital color printing systems, and the equity of Heidelberg Digital LLC., a leading maker of digital black-and-white printing systems.
Kodak says it also will acquire NexPress GmbH, Heidelberg's German subsidiary, and certain inventory and assets held by Heidelberg's regional operations, or market centers, as well as offer employment to sales and service employees currently with Heidelberg's market centers.
The company also says this move "advances Kodak's strategy of diversifying its business portfolio and accelerates its participation in the digital commercial printing industry. Earlier this year, Kodak completed the purchase of Scitex Digital Printing, the world's leader in high-speed, variable-data inkjet printing, and renamed the company Kodak Versamark, Inc.," adds Kodak.
Under the terms of the acquisition, according to Kodak's press release, the companies have agreed to use a performance-based, earn-out formula whereby Kodak will make periodic payments to Heidelberg over a two-year period, if certain sales goals are met. If all sales goals are met during the next two calendar years ending Dec. 31, 2005, Kodak will pay a maximum of $150 million in cash. Additional sales-related earn-out payments over a five-year period are agreed if certain sales targets are achieved. Kodak will not pay any cash at closing for the businesses being acquired, adds Eastman Kodak.
"The planned acquisition of NexPress and Heidelberg Digital complements Kodak's existing businesses—including Kodak Versamark, Inc., the leader in variable, on-demand continuous inkjet printing; Encad, Inc., a leading maker of wide-format inkjet printers; and its Kodak Polychrome Graphics joint venture, which is the number one supplier of film, plates and other products to the graphic arts industry," states Kodak's release.
For the full release, visit http://phx.corporate-ir.net/phoenix.zhtml?c=115911&p=irol-newsArticle&ID=502228&highlight. For general information about Eastman Kodak, visit kodak.com.