Receive our newsletter – data, insights and analysis delivered to you
  1. News
April 10, 2019

Montagu buys Kodak’s Flexographic Packaging Division

Kodak has completed the sale of its Flexographic Packaging Division (FPD) to Montagu Private Equity for a purchase price of $340m.

Kodak has completed the sale of its Flexographic Packaging Division (FPD) to Montagu Private Equity for a purchase price of $340m.

The company announced the deal in November.

The estimated total consideration of the deal includes a base purchase price of $340m and potential earn-out payments of up to $35m until 2020. Montagu will also pay $15m as a prepayment to Kodak at closing.

Kodak will use the net proceeds from the transaction to decrease the outstanding term debt, and expects to refinance the remaining debt.

FPD is now part of Montagu’s portfolio and will operate as a standalone company named Miraclon. The division’s leadership team will continue to directly manage Miraclon.

Montagu has plans to develop, manufacture and market flexographic products such as the Kodak Flexcel NX System for the packaging print segment through Miraclon.

Content from our partners
GMP: The food sector’s golden rules (and how they will evolve)
Food fraud in the supply chain (and how to fix it)
Cutting-edge innovation in fish packaging
“This is one of many steps we are taking to increase our financial stability and focus on generating cash for our shareholders.”

Kodak executive chairman Jim Continenza said: “Closing this sale was a priority for Kodak, and I’m proud we were able to execute on this plan and leverage a homegrown asset.

“This is one of many steps we are taking to increase our financial stability and focus on generating cash for our shareholders.”

Kodak will now focus on the growth areas of its Sonora environmental plates, enterprise inkjet, workflow software and brand licensing. It also plans to maximise value in commercial printing, film and advanced materials.

UBS Investment Bank served as exclusive financial advisor while Akin Gump Strauss Hauer & Feld served as legal advisor to Kodak for the transaction.

Ernst & Young acted as the financial advisor, Bain was the commercial advisor, and Linklaters was the legal advisor.

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The packaging industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU