Kodak, Brother reach $210 million deal for document imaging assets

By Caroline Salls

Pittsburgh, April 15 - Eastman Kodak Co. reached an agreement under which Brother Industries, Ltd. would purchase some of its document imaging business assets for $210 million, according to a company news release.

In addition to the purchase price, Brother would assume deferred service revenue liability, which totaled roughly $67 million as of Dec. 31.

Completion of the proposed transaction is subject to court approval and a marketing period in which Kodak can seek higher or better offers.

Closing is also subject to satisfying customary closing conditions, including required regulatory approvals.

"This proposed sale is another key step in Kodak's path to emergence - it moves us closer to realizing our strategic vision for Kodak's future," chairman and chief executive officer Antonio M. Perez said in the release.

Document imaging president Dolores Krutchen said in the release "We are pleased that under this agreement with Brother, document imaging will continue to strengthen its position as a leader of information capture and management solution for enterprise customers."

Kodak said it will seek court approval of bidding procedures at a hearing in late April and is targeting final court approval of a transaction in June.

Consistent with its goal of restructuring around its commercial imaging business, Kodak said it is continuing its sales process for its personalized imaging business.

Kodak is a Rochester, N.Y.-based imaging technology products and services provider to the photographic and graphic communications markets. The company filed for bankruptcy on Jan. 19, 2012 in the U.S. Bankruptcy Court for the Southern District of New York under Chapter 11 case number 12-10202.

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