“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,” says 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.”
In a transaction valued at approximately US$988m, Kodak paid US$16.50 per share for all the outstanding shares of Creo, or approximately US$954 million. Kodak expects the acquisition to add approximately US$700 million to revenue in 2006. 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.
With the acquisition complete, Creo’s operations will be included in the GS&S portfolio. Judi Hess, former president of Creo, has joined Kodak and will lead the Workflow & Prepress strategic product group as general manager and vice president. Hess will continue to be based in Vancouver, Canada, 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.
Among several other senior Creo people joining Kodak now that the acquisition is complete is Garron Helman, managing director, Greater Asia Region (GAR). Meanwhile, Creo’s Dan Gelbart is joining Kodak as a senior research fellow and special advisor to Jim Langley and Israel Sandler is joining as managing director, Europe, Africa and Middle East Region (EAMER).
Closer to home, Creo Australia and New Zealand general manager, Steve Green, becomes managing director for Australia/New Zealand with Kodak GCG, whilst Kodak Polychrome Graphics managing director, Steve Venn, becomes Kodak GCG managing director for South East Asia. Both Green and Venn will report to Helman in his new role as managing director, Sales and Operations, for the Greater Asia Region (GAR) at Kodak GCG.
“Since the completion of the acquisition of Kodak Polychrome Graphics (KPG) in April, we have made tremendous progress on integration,” says Jacobson. “We’ve put a new organisational 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.”
Amos Michelson, chief executive officer of Creo says, “Over the last decade, Creo has helped transform the graphic arts industry by driving the widespread adoption of digital workflow and computer to plate imaging.
“Creo customers, employees, and suppliers should be assured that business will continue as usual under the new organisation. The Kodak GCG organisation is well positioned to build on the tremendous Creo legacy of great people, great products, and great customers.”