Kodak contemplates sale of flexible-packaging division

30 July 2018 (Last Updated July 30th, 2018 11:23)

US firm Eastman Kodak is reportedly contemplating the sale of its flexible-packaging division to rake in more than $400m.

US firm Eastman Kodak is reportedly contemplating the sale of its flexible-packaging division to rake in more than $400m.

The value of the divestment of the division, which is engaged in manufacturing labelling and packaging equipment, is more than Kodak’s current market capitalisation of $258m. The company also has $403m of debt, according to S&P Global Market Intelligence.

The division earned revenues in excess of $145m and profit of $31m in 2017.

However, there is no certainty that the sales process will reach its logical conclusion.

“The flexible-packaging unit, which Kodak is considering selling, makes printing plates used to label packaging for consumer goods.”

The flexible-packaging unit, which Kodak is considering selling, makes printing plates used to label packaging for consumer goods.

Kodak’s competitors in the segment include Platform Specialty Products and Fujifilm Holdings.

Kodak reportedly gained significant profits from its film business, but it could not keep pace with digital technologies and filed for bankruptcy protection in 2012.

According to the Wall Street Journal report, the company at its peak employed 145,000 staff across its global operations and once had $14bn in annual revenue.

In 2013, the firm came out of bankruptcy as a leaner company focused on commercial imaging and printing.

Earlier this month, Kodak commercially launched the new Kodak Sword Max Thermal Plates that feature advanced resin technology (ART) and offer high-speed imaging, high productivity, and better resolution.

In April this year, Uteco Group and Kodak launched Sapphire EVO digital printing press and eco-friendly aqueous inks to expand label and flexible packaging possibilities.

With an ability to print more than 9,000 linear metres per hour, the digital press uses Kodak Stream Inkjet Technology to provide new opportunities for brands and packaging service providers.