Eastman Kodak Company will sell its document imaging line of business to Brother Industries for about $210 million plus Brother’s assumption of $67 million in deferred service revenue liability.
Kodak, which is in bankruptcy and consolidating its business lines, has been shopping the unit, which includes products and services for the health care industry, for many months. The offer from Brother is a “stalking horse bid” in which the seller selects one bid from a pool of bidders as the starting point to avoid underbidding for its products. Consequently, Kodak can continue to seek higher bids from the pool during a specified period.
Kodak will seek U.S. Bankruptcy Court approval of bidding procedures in late April and hopes to close a transaction in June. Brother Industries is a major manufacturer of laser, label and multi-function printers; fax machines and sewing machines.
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