Kodak-Brother Agreement Terminated

Brother announced that Kodak has terminated the two party’s agreement on the selling of Kodak’s personalized imaging and document imaging businesses. Instead, Kodak will now sell those assets to its largest creditor, the U.K. Kodak Pension Plan, for $650 million.

In mid-April, Kodak had agreed to sell certain assets of its document imaging (including document scanners, image capture software and technical services) business to Brother for about $210 million. They both stated that if no qualified competing bids were submitted in time, the acquisition will be completed.

Kodak Chairman and Chief Executive Officer Antonio Perez commented on the new transaction, “The KPP transaction moves us past several key hurdles in our reorganization. We are very pleased with the transaction.”

A Brother representative was very disappointed with the termination of the agreement, “We were acting on the assumption that something like this could happen, but it’s a shame.”