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Kodak to sell copier unit
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March 17, 1999: 11:12 a.m. ET
German press maker paying $200M, will go head-to-head with Xerox
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NEW YORK (CNNfn) - Eastman Kodak Co. said Wednesday it will sell its copier business to Heidelberger Druckmaschinen, a German printing press maker.
Under the deal, reportedly valued at $200 million, 1,500 jobs will transfer from Rochester, N.Y.-based Kodak (EK) to Muehlhausen, Germany, and to a joint venture the two companies run in England called NexPress.
The move, according to the report, means Kodak is shifting its focus to the consumer digital photography market.
The sale also clears the way for Heidelberger to go head-to-head with Xerox (XRX), which holds the dominant share of the digital printing sector.
Heidelberger, which had $3.8 billion in revenue in fiscal 1998 and is the world's largest maker of printing presses, has close ties with Kodak, including the joint printing venture NexPress
Regarding NexPress, the two companies announced an agreement Wednesday to expand its operations in Kirby, England, to include the black and white electrophotographic business.
Heidelberger will manufacture copier-duplicators, printer engines and related parts to supply NexPress.
"This transaction is of particular strategic importance to NexPress and Heidelberger. It will enable us to take the fast track into the growth market of digital printing and will also complement our existing product portfolios," said Wolfgang Pfizenmaier, CEO of Heidelberger Digital.
Kodak and Heidelberger expect to complete the transaction in April. Kodak sees no material effect on its earnings.
Shares of Kodak rose 1/4 to 67 15/16 in early trading Wednesday. 
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