Eastman Kodak has announced the completion of its acquisition of NexPress Solutions and Heidelberg Digital from Heidelberg, along with NexPress GmbH, Heidelberg’s German subsidiary, and certain inventory and assets related to the acquired businesses that were previously held by Heidelberg’s market centres. The acquired companies will be operated as a combined business under the management of Venkat Purushotham, NexPress Solutions president and CEO. Purushotham will report to James Langley, Kodak president of Commercial Printing. The Heidelberg Digital operations will be renamed NexPress Digital.
Kodak acquired the business using a performance-based earn-out formula based on sales goals, and as such did not pay any cash at closing for the operations. If those sales goals are met, Kodak will make periodic payments to Heidelberg over a two-year period.
If all sales goals are met during the next two calendar years ending December 31 2005, Kodak will pay a maximum of US$150m in cash to Heidelberg. There are additional sales-related earn-out payments over a five-year period if certain longer-term sales targets are achieved.
As planned, Kodak has hired more than 350 sales and service personnel from Heidelberg’s market centres to form the direct sales and service organisations for the NexPress 2100 and Digimaster product lines.
The sales and service organization will consist of three regions: Americas; Asia Pacific; and Europe, Africa and the Middle East region (EAMER). Alexander vanMeeuwen has been named general manager, Americas region; Peter Foley has been named general manager, Asia Pacific region; and Paul Willems has been named general manager, EAMER. Willems and vanMeeuven are former NexPress Solutions employees. Foley was previously employed by Heidelberg Australia.
Kodak anticipates that the acquisition and integration of these businesses will result in some cost reductions. The company will be in a better position to provide details on these actions as these operations are integrated.
