Kodak shelves Prosper inkjet business sale, appoints a new president for inkjet division

Towards the end of last year, the company had expected to sell the Prosper inkjet business in a bid to develop its Ultrastream technology, an inkjet printer that can handle mainstream commercial printing and packaging jobs. But, Kodak quoted mismatch in the sales number, which showed an increase and the offers it received, as a reason for the decision taken after an “in-depth management review”.

Kodak said it will continue to invest in Ultrastream technology, which is part of the Prosper business, with products based on the technology expected to go to market in 2019.

Jeff Clarke, CEO at Kodak, in a news release said, “This is a pragmatic decision given the improvements in the business and the offers received. Prosper performed well in 2016 with a 40% increase in annuity sales for the full year.”

Adding to Jeff’s statements, David Bullwinkle, the company’s chief financial officer said, there were multiple offers showing strong interest in the business and technology. “The range of consideration, however, did not reflect the value of the business today.”

Kodak has been working on the Ultrestream technology with 17 OEM partner companies including Fuji Kikai, GOSS China, Matti, Mitsubishi Heavy Industries Printing & Packaging Machinery, and Uteco. It will deliver evaluation kits to these company to explore the integration of the technology into their future printing solutions, the statement said.

Clarke said Vandabgriffe has played an integral role in the development of Ultrastream and Kodak’s digital print business since 2004. “He has had a strong track record of improving the businesses he has managed at Kodak and this will be an opportunity for him to pursue his goal of running a business headquartered near his European base.”

Following the announcements, Kodak shares dropped about 5% to $11.00 last Friday.