Kodak Completes Acquisition of Scitex Digital Printing
Jan 6, 2004
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Eastman Kodak Company announced the completion of its acquisition of the assets of Dayton, OH, U.S.-based Scitex Digital Printing (SDP), a manufacturer of high-speed, variable data inkjet printing systems.
Kodak acquired the assets of Scitex Digital Printing from Scitex Corporation Ltd. for U.S. $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.
According to Kodak, the acquisition will accelerate its growth in the $30-billion digital commercial printing industry and complement its 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 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. He will report to James Langley, president, Commercial Printing, and Senior Vice President, Eastman Kodak Company.
The company says this purchase is part of its growth strategy to acquire companies and technologies that complement its existing businesses, capabilities, and assets. Through a mixture of selective acquisitions and internal investments, Kodak says it plans to expand into a range of commercial businesses.
The company expects the purchase to be slightly dilutive in the first full year and to add to earnings thereafter.
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