Kodak has completed the sale of its Flexographic Packaging Division (FPD) to Montagu Private Equity LLP, which I’ve already covered when the companies first raised the possibility.
Montagu has renamed the flexo division as Miraclon, which now operates as a standalone company. The management team has also moved from Kodak to Miraclon.
The gross purchase price was $340 million less agreed indebtedness, other items, and delayed proceeds related to a deferred close entity leading to a final cost of roughly $320 million.
Kodak will use this money to reduce its outstanding term debt. The Company expects to refinance the remaining outstanding term debt. Jim Continenza, Executive Chairman of Kodak. “This is one of many steps we are taking to increase our financial stability and focus on generating cash for our shareholders.”
You can find more information on Miraclon and the Flexcel NX system here.