Kodak engages UBS to sell Flexographic Packaging Division
Kodak announced it has begun a process to sell its Flexographic Packaging division. The company has engaged UBS Investment Bank as its financial adviser for the transaction. Kodak's Flexographic Packaging Division produces and markets the FLEXCEL NX system of flexographic imaging equipment, printing plates, consumables and related services. For the last twelve months, FPD reported revenues of $150M and Operational EBITDA of $33M. During the sale process, Kodak said it will "continue to make significant investments in FPD by expanding manufacturing capacity, developing advanced technology and increasing its headcount to meet customer needs." Kodak also announced it had entered into a non-binding letter of intent for a $400M, 18-month loan with an existing term loan lender which would refinance its existing term debt, which would permit the company to pursue the sale process of FPD in a "thoughtful manner in order to achieve maximum value for shareholders. Net proceeds from the sale of FPD will first be used to repay this loan."