Eastman Kodak has reached agreement with Brother Industries, Ltd., for the proposed sale of certain assets of its Document Imaging business for a cash purchase price of approximately $210 million.
In addition, Brother will assume deferred service revenue liability of the business, which totaled approximately $67 million as of December 31, 2012.
Kodak's Document Imaging business provides a portfolio of scanners, capture software and services to enterprises. Brother is a global manufacturer of laser, label and multi-function printers, as well as fax machines and sewing machines.
Consummation of the transaction with Brother is subject to court approval and a marketing period in which Kodak may seek to obtain a higher or better offer for the business, alone or in combination with other businesses, including through a court-approved auction.
"This proposed sale is another key step in Kodak's path to emergence - it moves us closer to realizing our strategic vision for Kodak's future," said Antonio M. Perez, Chairman and Chief Executive Officer. "A sale to Brother, should they prevail, would represent an excellent outcome for Document Imaging's customers, partners and employees."
Under the terms of the agreement, Kodak will seek U.S. Bankruptcy Court approval of the bidding procedures at a hearing in late April and is targeting final court approval of a transaction in June.
Kodak is continuing its publicly announced sales process for its Personalized Imaging (PI) business, as it remains on track to emerge from bankruptcy in the middle of this year. It needs to raise at least $600 million from the sale of its noncommercial imaging assets, according to its amended financing agreement.