Its appears that EK has agreed with CVS the RSS agreement til December 2016 under the Kodak nameplate.
This is one valuable piece that is up sale. For instance if Fujifilm were to acquire this, this would give them a large portion of the market.
Any guesses how much this would sale for?
Judge Gropper approved on Friday a deal between EK & CVS Pharmacy extending the agreement for 4 more years.
Laura Quatela, President of Kodak & Personal Imaging is marketing this similar to an IPO. The buyer of this division will have no liability of Kodak going forward.
This is a very attractive IPO considering the following:
* operates 7,400 CVS Stores
105 Kodak Picture Kiosks
* $1.3 Billion in Sales 2011
$1.1 Billion in Sales Estimate 2012
* Completion of Sale of division First Half 2013
* Consist of RSS/Paper & Output Systems/Event Imaging
* The sale could probably include Kodak name for a time period
This really looks good for Private Equity to acquire and bring public 2-3 years from now. Or this could fit into a high tech company who could exploit what is already there.
Doesn't it seems strange that stakeholders have not heard any info regarding the sale of the CVS RSS unit after the agreement with CVS was finalized.
The POR is in the 1st qtr of 2013. My guess is that this would sell for more than $500M and should be up for bidding like the patents or the EBP Utility.
Its look like Assets Disposition is next of the agenda for EK. The latest Linklaters LLP statement shows much time spend discussing disposition of assets.
The Trustee now permits the viewing of Monthly Statement of Counsels without the names associated with the clients. From the Statement you get what the Counsels were working on to get their compensation.
The CVS Replacement Agreements comes next in Judge Gropper's Court on Friday December 7, 2012.
11/19/2012 PR Newswire
New KODAK Kiosk Connect App allows consumers to create photo gifts wirelessly and on-the-go using their smartphone photos
Just in time for the holidays, creating prints and photo gifts from a smartphone is now easier than ever before. Starting today, consumers can wirelessly transfer images directly from their ANDROID and APPLE Smartphones using the KODAK Kiosk Connect App at KODAK Picture Kiosks in CVS/pharmacy and Bartell Drug stores throughout and U.S.
Valuation of RSS is moving higher especially +7,000 locations
The possibilities are ALL here. EK is going to sell its brand name, film processing, & most important its kiosks(+ 7000 locations inside CVS).
All the buyer needs is $$$$$$ and a game plan.
Shorts, ever come to you why CVS gave EK a lease till December 2016? CVS would need assurances that the potential buyer had clout. I don't think CVS would want to go through an ugly divorce if things did not work out well.
Maybe PRO was right.
"This is one valuable piece that is up sale."
Do you think that it is enough to satisfy the Creditors?
The other sales apparently won't be.
What would satisfy the Creditors? 100%? Maybe. 100% plus interest?
" 'These are not easy decisions,' Perez said, adding that selling the businesses was motivated in part by the need to satisfy creditors of the bankrupt company."
Lets see, Kodak has to pay administration fees,trustee, invoices, satisfy the creditors,cough up $635 million for Retirees and $40 million for ATCL(sp) then work through all of the other classes of unsecured claims above commons share holders and it is preparing to sell off 2 of its 3 sectors plus 1100 patents to satisfy Creditors. Yeah, I'm pretty sure that AP's worries over common share holders keep him awake at night.
This is Alix Partners take:
"The Debtors and their advisors have reached out to numerous potentially interest parties and provided additional information on the business and sale process to the significant number of parties that executed non-disclosure agreements with Kodak. The Debtors have already received a first round bids, commenced management meetings with a number of potential buyers and are providing a number of additional information to support the diligence efforts."
The cost that EK negotiated with the Retirees & ATLC has already taken into account when EK are soliciting bids from the interested parties.
Whats interesting is CVS has over 7,000 stores with this concept. If a major player wanted to taken this space and could deal with CVS on their new direction from now on, the arrangement has very good potential going forward.
CVS don't really have too much tech things in their stores but this could change.
"Any guesses how much this would sale for?"
Take AP's estimate and divide by 5.
"Eastman Kodak exiting still photography business
By Matthew Daneman, USA TODAY Updated 8/24/2012 2:24 PM
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ROCHESTER, N.Y. – After decades of churning out untold millions of little yellow boxes of camera film, Eastman Kodak is saying goodbye to the still photography business.
Annette Lein, Rochester Democrat and Chronicle
Kodak headquarters in Rochester, N.Y.
Annette Lein, Rochester Democrat and Chronicle
Kodak headquarters in Rochester, N.Y.
The company synonymous with photography said Thursday it is putting a batch of businesses up for sale, including more than 100,000 photo kiosks installed at retailers around the globe and its professional and consumer still camera film operation.
"These are attractive, market-leading businesses with great teams of employees and products," CEO Antonio M. Perez said in a phone briefing with reporters. "We believe they have good long-term prospects."
Perez's decision to sell the still film and photo kiosk businesses marks a 180-degree turn from just a few weeks ago. When Kodak gave creditors a rough sketch of its post-bankruptcy business plan, it included the personalized imaging unit, of which the still film and kiosk businesses are parts. Kodak estimated at the time that the personalized imaging business would generate $1.1 billion in revenue this year.
"These are not easy decisions," Perez said, adding that selling the businesses was motivated in part by the need to satisfy creditors of the bankrupt company.
Kodak's fortunes for much of its history revolved around camera film, with the company in 1885 rolling out Eastman American Film, the first transparent film negative. And the sale follows Kodak's announcement in February that it was shuttering its digital camera business. That unit is to close by Sept. 30.
The latest sales add to the growing list of operations the Rochester icon has unloaded in the past year. In the months leading up to the Chapter 11 bankruptcy filing in January, Kodak sold its CMOS and CCD sensor businesses and its microfilm business. Since the filing, it has sold the Cinesite special effects business and Kodak Gallery.
Also up for sale are Kodak's document imaging business, which is primarily document scanners; its silver halide paper business; and its specialty imaging business, which primarily does souvenir photos at events and theme parks.
The sale of these businesses doesn't automatically mean the end of such manufacturing work being done locally. Indeed, the Rochester economy is increasingly peppered with Kodak spinoffs, from medical imaging company Carestream Health to CCD image sensor firm Truesense Imaging.
Perez said Kodak, through its investment banker and financial adviser Lazard, is marketing the businesses now and hoping to have them sold off in the first half of 2013. He declined to say how much Kodak is counting on from the sale.
In the conference call, Perez repeatedly circled back to the idea that these sales were part of Kodak's goal to focus in the future on a set of core businesses — commercial printing, packaging printing and various printing services.
Kodak made a point of saying that businesses, such as consumer inkjet printing, motion picture and television film, and specialty chemicals, are outside of the core. Ken Luskin, president of California wealth management firm Intrinsic Value Asset Management, said the company seems to be indicating that it will also sell those businesses.
Kodak spokesman Christopher Veronda, when asked if Kodak has plans to sell the consumer inkjet line, said that it is "one of the other businesses that we continue to own and operate."
"Our consumer inkjet printers have built a strong market niche," Veronda said. "We continue to sell and support printers and ink, including through partnerships."
The sales announced Thursday should lead to a Kodak that fits together better and could give investors more confidence, Luskin said.
"Here's a nice cohesive company that makes sense and has a mid-cap niche, something that Wall Street with a new CEO in there would say, 'Hey, this is a new Kodak.' This is the right thing to do and it keeps their creditors at bay."
During the 15-minute briefing, Perez provided few details about the status of Kodak's ongoing auction of 1,100 digital imaging patents for potentially billions of dollars. The auction began Aug. 8 and the company had initially planned on wrapping it up by Aug. 13. Kodak has said, and reiterated Thursday, that it is still in discussions with unnamed parties regarding the potential sale and that it might opt ultimately to not sell them at all.
Perez declined to elaborate. "There are a lot of companies that are interested," he said. "There are all sorts of issues to deal with."
Daneman also reports for The Rochester (N.Y.)Democrat and Chronicle"