updated 06:47 pm EDT, Mon April 15, 2013
Sale pending regulatory, bankruptcy approval; could get a better offer
Eastman Kodak has reached a preliminary agreement with Brother Industries for the sale of certain assets of its document image scanning business, for a cash purchase price of approximately $210 million. Kodak's Document Imaging business provides a comprehensive portfolio of scanners, capture software and services to enterprise customers, and the resultant IP transfer and customer database supplements Brother's existing product lineup.
Deal finalization is pending regulatory approval, bankruptcy court approval, as well as a period of time where Kodak may seek a better offer for the assets at stake. The bankruptcy court hearing is scheduled for late April, with an expected completion date in June.
"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," said Antonio M. Perez, chairman and chief executive officer of the troubled firm. "A sale to Brother, should they prevail, would represent an excellent outcome for Document Imaging's customers, partners and employees."
Despite continuing dismal financial results, Kodak told investors in its annual report that it is intending to emerge from bankruptcy in the summer of 2013, a bit later than expected. The company posted a $402 million loss for the final quarter of 2012, and lost $1.38 billion in the 2012 fiscal year. The massive losses are nearly double that from 2011.
Judge Allan Gropper, the judge overseeing the Kodak bankruptcy proceedings, approved the $525 million patent sale of many of Kodak's patents from across its 110-year plus history. The completed sale will allow the company to continue with a plan to obtain an additional $830 million in financing on top of the patent proceeds.