Kodak Completes Acquisition of NexPress Solutions and Heidelberg Digital
Press release from the issuing company
ROCHESTER, N.Y.--May 3, 2004-- Eastman Kodak Company announced the completion of its acquisition of NexPress Solutions L.L.C and Heidelberg Digital L.L.C from Heidelberger Druckmaschinen AG, the world's largest maker of offset printing machines.
Kodak also completed the purchase of NexPress GmbH, Heidelberg's German subsidiary, and certain inventory and assets related to the acquired businesses that were previously held by Heidelberg's market centers.
The acquired companies will be operated as a combined business under the management of Venkat Purushotham, president and CEO, NexPress Solutions, Inc. Purushotham will report to James Langley, Kodak's president of Commercial Printing. The Heidelberg Digital operations will be renamed NexPress Digital, L.L.C.
Kodak did not pay any cash at closing for the operations.
Kodak acquired the business using a performance-based earn-out formula based on sales goals. If those sales goals are met, Kodak will make periodic payments to Heidelberg over a two-year period. If all sales goals are met during the next two calendar years ending Dec. 31, 2005, Kodak will pay a maximum of $150 million in cash to Heidelberg. There are additional sales-related earn-out payments over a five-year period if certain longer-term sales targets are achieved.
As planned, Kodak has hired more than 350 sales and service personnel from Heidelberg's market centers to form the direct sales and service organizations for the NexPress 2100 and Digimaster product lines.
The sales and service organization will consist of three regions: Americas; Asia Pacific; and Europe, Africa and the Middle East region (EAMER). Alexander vanMeeuwen has been named general manager, Americas region; Peter Foley has been named general manager, Asia Pacific region; and Paul Willems has been named general manager, EAMER. Willems and vanMeeuven are former NexPress Solutions employees. Foley was previously employed by Heidelberg in Australia.
Additionally, Mark Weber has been appointed senior vice president of Indirect Sales Partnerships, NexPress Solutions Inc., responsible for distribution and indirect partners worldwide for both color and black and white printing solutions. Weber was formerly executive vice president for Solutions and Sales Partnerships at Heidelberg Digital LL..C.
The acquisition complements Kodak's existing commercial printing operations, including its wholly owned subsidiaries, ENCAD Inc., a leading maker of large-format inkjet printers, and Kodak Versamark, Inc., the leader in high-speed, 100% variable data printing, as well as its Kodak Polychrome Graphics joint venture.
Kodak anticipates that the acquisition and integration of these businesses will result in some cost reductions. The company will be in a better position to provide details on these actions as these operations are integrated.
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