It has appointed UBS Investment Bank as its financial adviser for the transaction.

Kodak CEO Jeff Clarke called the move a “great opportunity to unlock value for shareholders”.

Clarke said, “The flexographic packaging division has performed exceptionally well over the past five years and has become a significant player in the industry. This business is an excellent example of Kodak incubating and bringing disruptive innovation to the marketplace. Kodak has been evaluating monetisation opportunities for the last several years in order to deleverage the company and we believe this is the right time to monetise this valuable asset.”

Kodak had previously tried to sell its inkjet business without success, and reversed that decision last year. 

Kodak’s flexo business reported revenues of USD 150 million and operational EBITDA of USD 33 million for last 12 months. During this period, the flexo business has demonstrated strong growth, achieving a nine per cent increase in revenue and 18 per cent operational EBITDA growth.

“Following this transaction, Kodak’s improved capital structure will allow us to increase our focus on demonstrated growth engines while continuing to invest in and provide solutions across the commercial printing, film, and advanced materials industries,” said Clarke.

Kodak also announced it had entered into a non-binding letter of intent for a USD 400 million, 18-month loan with an existing term loan lender which would refinance its existing term debt, which would permit the company to pursue the sale process of the flexo business in a thoughtful manner in order to achieve maximum value for shareholders.

Kodak’s revenues for the quarter ending 30 June 2018 were USD 372 million, a decline of USD nine million compared with the second quarter of 2017.