The UK Kodak Pension Plan (KPP) has completed its acquisition of the Kodak Personalised Imaging and Document Imaging businesses.
KPP acquired the organisations from Eastman Kodak Company and subsequently created a new organisation, Kodak Alaris.
The new company will focus on strategic, ongoing investments for these organisations.
The move follows KPP filing the agreement with the US Bankruptcy Court in April 2013, detailing that the company’s personalised imaging and document imaging businesses will be spun off under new ownership to KPP for a cash and non-cash consideration of $650 million (£420 million).
Certain proceeds will be used to support the emergence of Kodak from Chapter 11 bankruptcy and the growth of its commercial imaging business.
The agreement also settles approximately $2.8 billion (£1.8 billion) of claims by the defined benefit (DB) pension plan against Kodak and certain of its affiliates.
The Pensions Regulator (TPR) has been kept fully informed of the process and has granted clearance in respect of the acquisition.
TPR has decided that it will approve the release of Kodak, the KPP’s sponsoring employer, from its liabilities to the KPP.
The Pension Protection Fund has confirmed that it has no objection.
Steven Ross, independent chairman of KPP, said: “Our excitement around the acquisition of these organisations comes not just from their market strength but from what we see as long-term, highly successful growth opportunities.”
“Today starts the new chapter of a storied brand and we’re thrilled with the potential the new employer holds for our plan members, our customers, and our employees.”