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Sun Chemical’s Shares in Kodak Polychrome Graphics Redeemed by JV Partner Eastman Kodak Company
Fort Lee, NJ
- January 12, 2005 -- Sun Chemical Corporation today announced that Eastman Kodak Company will become the sole owner of graphic arts supplier Kodak Polychrome Graphics (KPG) through redemption of Sun Chemical Corporation's 50 percent interest in the joint venture. Completion of the deal, which will exceed $800 million in cash, is expected in April. Currently, Kodak and Sun Chemical each own half of KPG, a joint venture established in 1998.
"Since its inception, KPG has grown into a highly successful leader in the graphic arts market based on a sound strategy and a world-class team, and is highly valued by both partners," said Wes Lucas, chairman, president and CEO of Sun Chemical Corporation. "However, with the end of the joint venture agreement coming in the near future, both Sun Chemical and Kodak agreed that now is an excellent time to stake out a clear future for KPG. The redemption of these shares creates the opportunity for Sun Chemical to aggressively pursue its growth strategies."
"Sun Chemical is the largest player in inks, coatings and pigments, and this transaction will fund strategic growth in our core markets, as well as new technologies that are key to us," Lucas said.
As part of its plans, Sun Chemical recently purchased Rycoline, Inc., which manufactures pressroom consumables such as press blankets and fountain solutions. This is part of its strategy to offer a "total pressroom solution." Sun Chemical also has begun offering Smart Colour™, a complete color solution with such benefits as color definition and control systems backed by a library of over 70,000 colors. It can be used all the way through the graphic reproduction process, from designer to press operator.
Under the SunJet™ name, Sun Chemical has long been a leader in supplying digital and UV inks for use by manufacturers of inkjet printers. Sun Chemical also launched plans to introduce a high-speed, fixed-array inkjet printer called FastJet™, designed to print four-color corrugated packaging.
Sun Chemical recently formed Sun Chemical Security®, which offers a variety of security solutions for branded consumer goods and documents such as currency and other financial instruments. In 2004, the security group also acquired the assets of Veritec Group, Inc., which provides technology and services to protect product integrity and brand security.
Through recent acquisitions, such as Bayer's pigments business, Sun Chemical also continues to grow as the industry leader in pigments used in a wide variety of applications such as inks, paints, cosmetics and plastics.
As part of the agreement, existing sales and distribution arrangements between KPG and Sun Chemical will remain in place. Lucas said Sun Chemical and Kodak plan to continue developing cooperative opportunities to service mutual customers. "Based on our successful history of collaboration, we expect to continue this fruitful relationship," he said.
Final value for redemption of the shares will be confirmed when the deal is completed in April. It will involve cash payments over future years.
About Sun Chemical
Sun Chemical, the world's largest producer of printing inks and pigments, is a leading provider of materials to packaging, publication, coatings, plastics, cosmetics, and other industrial markets. With annual sales of more than $3 billion, Sun Chemical has over 12,000 employees supporting customers around the world. The Sun Chemical Group of companies includes such well-known names as Coates Lorilleux, Gibbon, Hartmann, Kohl & Madden, Swale, Usher-Walker and US Ink.
Sun Chemical Corporation in the U.S. and Sun Chemical Limited in England are subsidiaries of Sun Chemical Group B.V., the Netherlands. Sun Chemical has headquarters in Fort Lee, New Jersey, U.S.A.; Watford, England; and Weesp, the Netherlands. For more information, please visit our Web site at www.sunchemical.com.
About Eastman Kodak Company
Kodak is the leader in helping people take, share, print and view images -- for memories, for information, for entertainment. The company is a major participant in info imaging, a $385 billion industry composed of devices (digital cameras and flat-panel displays), infrastructure (online networks and delivery systems for images) and services & media (software, film and paper enabling people to access, analyze and print images). With sales of $13.3 billion in 2003, the company comprises several businesses: Health, supplying the healthcare industry with traditional and digital image capture and output products and services; Graphic Communications Group, offering on-demand color printing and networking publishing systems consisting of three wholly owned subsidiaries: Encad, Inc., NexPress Solutions, and Kodak Versamark; Commercial Imaging, offering image capture, output and storage products and services to businesses and government; Display & Components, which designs and manufactures state-of-the-art organic light-emitting diode displays as well as other specialty materials, and delivers optics and imaging sensors to original equipment manufacturers; and Digital & Film Imaging Systems, providing consumers, professionals and cinematographers with digital and traditional products and services. For more information visit: www.kodak.com.
About Kodak Polychrome Graphics
KPG manufactures a wide range of conventional lithographic plates and computer-to-plate solutions, Kodak branded graphic arts films, digital, inkjet, analog and virtual proofing products, as well as workflow solutions and color management tools. With headquarters in Norwalk, CT, the company serves customers around the globe with regional offices in the United States, Europe, Japan, Asia Pacific and Latin America. www.kpgraphics.com.
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