Sun Chemical Completes Share Redemption In Kodak Polychrome Graphics Joint Venture
Press release from the issuing company
Parsippany, NJ - April 1, 2005 - Sun Chemical Corporation today finalized the previously announced redemption of its 50% share in Kodak Polychrome Graphics (KPG), a joint venture established in 1988 between Eastman Kodak Company and Sun Chemical. Prior to the completion of the stock redemption, Sun Chemical and Kodak had each owned half of KPG.
Cash payments for the redemption total $816.5 million, to be paid over several years. $316.5 million was received at the closing. As part of the agreement, existing sales and distribution arrangements between KPG and Sun Chemical will remain in place.
“The successful redemption of Sun Chemical’s interest in KPG creates a significant opportunity for Sun Chemical to aggressively pursue its growth strategies,” said Wes Lucas, Chairman, President and CEO of Sun Chemical. “This transaction will support development in several new markets, products, and technologies, and ensuring that we provide superior value to our customers in the inks, coatings and pigments markets.”
Sun Chemical’s growth strategy has been evidenced by recent acquisitions and actions such as:
Acquiring Rycoline, a leading producer and supplier of a complete line of fountain solutions, blankets, press washes, silicones, overprint coatings and other printing products from well-known brands Rycoline, Sun Graphic, Rogersol and Vivitek.
Acquiring the assets of Veritec, a provider of technology and services that protect product integrity and brand security, led Sun Chemical to form Sun Chemical Security, now offering a variety of security solutions for branded consumer goods and documents including currency and other financial instruments. Sun Chemical also purchased the assets of ÇBS Printas, a leading Turkish supplier of paste inks used for publication and commercial printing, and Bayer’s high performance organic pigment business, whose pigments are used in coatings for automotive, industrial and architectural applications, as well as for coloring plastics and fibers.
New innovative products and services including FastJet, a high-speed, fixed-array inkjet printer, designed to print four-color corrugated packaging, which will be offered through SunJet, and Smart Colour, a complete color solution, continue to expand the company’s total package offerings to the printing world.
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