“The Prosper business has significant potential for accelerated growth,” said Jeff Clarke, Kodak CEO. “To achieve its full economic potential, Prosper will be best leveraged by a company with a larger sales and distribution footprint in digital printing markets.”
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“We have received strategic interest in the Prosper business from companies and their financial representatives,” Clarke states. “We will continue to invest in Prosper during the sale process. This is an exceptional technology and product set, highly valued by the printing industry.”
The company has hired Sagent Advisors and DC Advisory to manage the Prosper sale, according to printing sources. Prosper, which had been one of Kodak’s growth areas, accounted for about $81 million, or 5 percent of sales in 2015, Kodak said in its most recent earnings report.
Founded in 1880, Kodak was a pioneer in the print and movie film industries. Since 2012, the company has layed off more than 3,500 employees in the United States.
In September 2013, Kodak emerged from Chapter 11 bankruptcy protection as a technology company focused on imaging for business markets, including graphic arts, commercial print, publishing, packaging, electronic displays, entertainment and commercial films, and consumer products.
Under the new structure, company officials said the Kodak's Enterprise Inkjet Systems division in Kettering would serve existing and future inkjet printing customers with Kodak Prosper and Versamark systems, print on demand solutions, and ink original equipment manufacturer solutions. The Prosper system was developed in part in Kettering.
The Versamark system is not for sale, company officials told other media outlets. Company officials could not be reached Monday night
In its fourth quarter earnings report, Kodak said it saw growth last year in its Prosper business based in Kettering with revenues growing by roughly 35 percent. However, a company spokesman said it was becoming apparent that the company would not be able handle the demand.
“We are best to sell this business now and then move forward,” a company spokesman told the Rochester Democrat and Chronicle. “We are getting interest in it. We are involved in talks.”
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