US$817 million Sun buyout makes Kodak sole owner of KPG

Kodak becomes the sole owner of Kodak Polychrome Graphics (KPG) through an acquisition of Sun Chemical Corporation's 50 percent share in the business. The purchase signals a further development of the company's move back into the graphic arts market that was revealed in 2003.

Kodak's graphic communications group president James Langley confirmed the company's intentions of coalescing the different divisions for a strategic advantage. “This transaction is a major step toward delivering on our intent of presenting one face to the customer,” Langley said.

Kodak plans to operate KPG as a wholly owned subsidiary within the graphics communications group, leaving the management team intact with CEO Jeff Jacobsen at the helm. Kodak closed its main film manufacturing plant in Australia late last year at Coburg.

According to Lalan Dogan, marketing manager KPG in Australia, the move will position KPG as a key part of the expanded Kodak graphics communication group. "We are excited about this news and the ways in which it will make KPG an even stronger solutions provider. KPG will become a cornerstone of Kodak's graphic communications group," he said.

He maintains it will be business as usual for both companies until the transaction is closed, which is anticipated in April 2005.

In Australia there is already some cooperation between KPG and NexPress, which is opening its new showroom next month in Latrobe St, Melbourne.
 
As for Sun Chemical, it says it will use the cash from the sale to further invest in its core markets as well as to fund strategic growth in new technologies.