Kodak To Buy Heidelberg's Digital Business
"We are so confident in NexPress's prospects that we are willing to forego cash at closing in return for a short-term earn-out package," says Schreier.
Integration of digital printing in print shops' workflows, using Prinect, will remain part of Heidelberg's service offerings.
Kodak plans to operate the NexPress and Heidelberg Digital subsidiaries as a combined business under headed up by Venkat Purushotham, president and CEO of NexPress. He will report to Langley.
Kodak expects the NexPress and Heidelberg Digital operations to increase revenue incrementally by about $175 million during the rest of 2004.
"Although Heidelberger Druckmaschinen is reorganizing to focus on our core business, we believe that digital commercial printing will be a profitable segment and that NexPress is extremely well positioned in the market," adds Schreier. "We fully intend to work with NexPress and Kodak to ensure a continuity of service and support for all of our customers during this transition."
Heidelberg also announced it is transferring its web offset division to Goss International. This transaction includes Heidelberg's commercial web and newspaper presses, as well as the web finishing business in the USA. Heidelberg will become a new shareholder at Goss International, holding slightly below 20 percent of the company's shares.