Kodak increases presence in digital printing market
Kodak increases presence in digital printing market
Kodak has bought into the digital colour and black-and-white printing businesses of Heidelberger Druckmaschinen to place it firmly at the forefront of the digital commercial printing industry.
Eastman Kodak will purchase Heidelberger's 50 percent interest in NexPress Solutions L.L.C., a 50/50 joint venture of Kodak and Heidelberger that makes digital colour printing systems, and the equity of Heidelberg Digital L.L.C., a leading maker of digital black-and-white printing systems.
In addition, Kodak will also buy NexPress GMB, Heidelberg's German subsidiary. Earlier this year, Kodak also acquired Scitex Digital Printing, which deals with high-speed inkjet printing.
James Langley, President, Commercial Printing and Senior Vice President, Eastman Kodak explained what these strategic acquisitions will mean to customers. "We plan on building upon the early success of NexPress by expanding its product line to provide customers with a greater array of systems for their digital commercial printing needs. We will continue our R& D investment to extend the leadership position of the NexPress 2100 and expand our product offerings.
"Kodak is creating one of the broadest digital commercial printing portfolios in the industry, which will enable us to better serve our customers' printing needs - from wide-format inkjet printing and transactional black and white and colour printing, to high-end on-demand colour publishing and continuous inkjet.
"Ownership of NexPress and Heidelberg Digital by one company will streamline the management process and enable faster decision making. Customers will work with a more efficient organisation that is dedicated to developing, marketing and supporting digital printing solutions."
Antonio Perez, President and Chief Operating Officer, Eastman Kodak added. "Our strategy involves the smart application of resources to compliment Kodak's own technology and internal strengths, including a leading portfolio of intellectual property related to electrophotography and inkjet printing. Through the purchase, Kodak intends to increase its share in the $17 billion digital commercial printing market in which the company participates. The move strategically positions Kodak in the market for digital production printing, which is growing at double digit-rates."
Kodak has bought the businesses under a performance based formula. It will make periodic payments to Heidelberg over a two year period if goals are met. If the goals are not met, however, Kodak will pay a maximum of $150 million in cash.
Heidelberg Digital has 4,000 Digimaster black and white systems installed worldwide. Combined, the acquired businesses employ 2,000 people.
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