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| Kodak Acquisition of Creo Complete |
Eastman Kodak Company (NYSE: EK) today announced it has completed its acquisition of
Creo Inc., a premier supplier of prepress and workflow systems used by commercial
printers around the world. Creo’s extensive solutions portfolio is now part of the
Graphic Solutions & Services (GS&S) operating unit within Kodak’s Graphic Communications
Group (GCG). An important milestone in Kodak’s digitally oriented growth strategy, the acquisition of Creo uniquely positions Kodak to be the preferred partner for its customers, helping them improve efficiency, expand their offerings and grow their businesses. In a transaction valued at approximately US$988 million, Kodak paid US$16.50 per share for all the outstanding shares of Creo, or approximately US$954 million. The value of the transaction also includes Creo’s payment of approximately US$34 million for the cancellation of options prior to the close. For 2005, the acquisition is expected to be modestly dilutive to operational earnings. Kodak expects the acquisition to add approximately $.05 per share to operational earnings in 2006 and to add approximately $700 million in revenue. Kodak used its bank lines to initially fund the acquisition, with a portion of this debt to be refinanced in the capital markets at a future date. “The inclusion of Creo -- its solutions and its people -- into Kodak marks another significant milestone in our journey to become the global leader in graphic communications,” said James Langley, President, Graphic Communications Group, and Senior Vice President, Eastman Kodak Company. “The addition of a complementary portfolio of leading computer-to-plate equipment, workflow software, prepress, proofing, digital plates, scanning and image capture solutions, in addition to the highly talented Creo team, will make Kodak a stronger partner for our customers.” Creo and GCG Integration With the acquisition complete, Creo’s operations will be included in the GS&S portfolio. Judi Hess, formerly President, Creo, has joined Kodak and will lead the Workflow & Prepress strategic product group as General Manager and Vice President. Hess will remain based in Vancouver, B.C., which will serve as GCG’s center for prepress and workflow applications. She reports to Jeff Jacobson, Chief Operating Officer, Graphic Communications Group, and President, Graphic Solutions & Services. Several other senior Creo managers will join Kodak now that the acquisition is complete, including: Dan Gelbart is joining Kodak as a Senior Research Fellow and special advisor to Jim Langley. Israel Sandler is Managing Director, Europe, Africa and Middle East Region (EAMER). Garron Helman is Managing Director, Greater Asia Region (GAR). “Since the completion of the acquisition of Kodak Polychrome Graphics (KPG) in April, we have made tremendous progress on integration,” said Jacobson. “We’ve put a new organizational structure in place, named a strong leadership team, and increased collaboration in sales and service. The completion of the Creo acquisition will only accelerate our integration activities, and allow us to achieve synergies and to offer our customers more and better solutions to help them grow their businesses.” |
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About
From Glass Plates to Digital Images
With the slogan "you press the button, we do the rest," George Eastman in 1888 put the first simple camera into the hands of a world of consumers. In so doing, he made what had been a cumbersome and complicated process easy to use and accessible to nearly everyone.
Through the years, Kodak has led the way with an abundance of new products and processes that have made photography simpler, more useful and more enjoyable. Today, our work increasingly involves digital technology, combining the power and convenience of electronics with the quality of traditional photography to produce systems that bring levels of utility and fun to the taking, "making" and utilization of images.
What George Eastman began remains a goal of Eastman Kodak Company today, to provide convenience and quality to our customers so more and more people can experience the special wonders of photography and capture and re-live their more cherished moments.
