Kodak Completes Acquisition of SDP; Renames Operation Kodak Versamark
Press release from the issuing company
ROCHESTER, N.Y.--Jan. 5, 2004-- Eastman Kodak Company announced the completion of its acquisition of the assets of Dayton, Ohio-based Scitex Digital Printing (SDP), the world leader in high-speed, variable data inkjet printing systems, from Scitex Corporation Ltd.
Kodak acquired the assets of Scitex Digital Printing for $250 million and funded the acquisition through available cash, with no incremental borrowing. After taking into account $13 million of Scitex Digital Printing's cash balance acquired at closing, Kodak paid a net cash price of $237 million.
Scitex Digital Printing will now operate under the name of Kodak Versamark, Inc.
The acquisition will accelerate Kodak's growth in the $30 billion digital commercial printing industry and complement Kodak's existing commercial printing operations, including its NexPress Solutions LLC and Kodak Polychrome Graphics joint ventures, as well as its wholly owned subsidiary, ENCAD Inc., a leading maker of wide-format inkjet printers.
Kodak Versamark will operate as a wholly owned subsidiary of Kodak. Nachum "Homi" Shamir, formerly President and CEO of Scitex Digital Printing and CEO of Scitex Corporation, has joined Kodak Versamark, Inc. as President and will run the subsidiary from Dayton, Ohio. He will report to James Langley, President, Commercial Printing, and Senior Vice President, Eastman Kodak Company.
The purchase is part of Kodak's growth strategy to acquire, in a disciplined manner, companies and technologies that complement the company's existing businesses, capabilities and assets. Through a mixture of selective acquisitions and internal investments, Kodak plans to expand into a range of commercial businesses.
Kodak expects the purchase to be slightly dilutive in the first full year and to add to earnings thereafter.
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