Brother Industries Signs Agreement To Purchase The Document Imaging Business
Of Eastman Kodak
NAGOYA, Japan, April 15, 2013 /CNW/ - Brother Industries, Ltd. ("Brother" or
the "Company") today announced that it has entered into an agreement with
Eastman Kodak Company ("Kodak") to acquire certain assets of Kodak's Document
Imaging business ("DI"). The agreement is the initial stalking horse bid
under Section 363 of the U.S. Bankruptcy Code, to be followed by an orderly
auction process under certain procedures set forth in the agreement.(1) Under
the agreement, Brother would acquire these assets for approximately USD 210
million in cash subject to certain price adjustments, plus the assumption of
specified liabilities. Brother will assume the specified assets and
liabilities of DI, which include approximately USD 67 million(2) deferred
revenue liabilities associated with customer prepayments. If Brother is
selected as the successful bidder at the auction, or if no qualified competing
bids are timely submitted, and subject to court and other regulatory
approvals, the Company expects to complete the acquisition in the third
quarter of 2013.
"We believe that Kodak Document Imaging is an asset that will help to
strengthen Brother's global position in document imaging solutions and enable
us to provide an enhanced product and service offering to an expanded universe
of customers," said Toshikazu Koike, Representative Director and President of
Brother Industries, Ltd. "Kodak Document Imaging has a long history of
innovation in the scanning and document field and is a natural fit for
Rationale for the transaction With global sales, Kodak's Document Imaging
business is a complement to Brother's existing lineup which includes Brother
Multi-Function Center® all-in-ones and Brother ImageCenter™ scanners.
Brother will acquire those assets and personnel required for the continued
operation of DI. This addition, which includes Document Scanners, Image
Capture Software and Technical Services, will allow Brother to offer a more
robust portfolio of document scanning hardware, services and solutions to
small, medium and large businesses, positioning the Company to take full
advantage of the evolving office solution marketplace.
Brother is being advised by UBS Investment Bank as its financial advisors and
Baker Botts L.L.P. as its legal counsel.
Acquisition Process and Timeline Kodak and its U.S. subsidiaries filed for
reorganization under chapter 11 in the U.S. Bankruptcy Court for the Southern
District of New York on January 19, 2012. Kodak's non-U.S. subsidiaries are
not in bankruptcy. The transaction requires approval from U.S. bankruptcy
court and is subject to a competitive bidding process under Section 363. The
transaction is also subject to regulatory approvals and other customary
About Brother Founded in 1908, Brother has become a leading global
manufacturer of laser printers, label printers, Multi-Function Center®, fax
machines, P-touch electronic labelers, typewriters and sewing machines.
Brother manufactures innovative, reliable and practical products for home and
office use, while maintaining high customer satisfaction and following
comprehensive measures for environmental conservation. For more information
(1) Under Section 363, the Court supervises an orderly auction process during
which any other potential bidders may submit a bid. After the specified period
is closed the Court approves the winning bid.
(2) As of December 2012
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SOURCE: Brother Industries, Ltd.
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-0- Apr/15/2013 12:45 GMT
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