ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Tuesday, September 10, 1996 TAG: 9609100064
SECTION: BUSINESS PAGE: B-6 EDITION: METRO
DATELINE: ROCHESTER, N.Y.
Eastman Kodak Co. said Monday it is turning over sales, service and distribution of its high-volume copiers and printers to London-based Danka Business Systems PLC for about $684 million.
The sale will move Danka from a distant third in the copier-service industry to second place with Alco Standard Corp., but it will still remain far behind industry leader Xerox Corp.
Since January, Kodak has been trying to find a strategic ally or dispose of its $1.8 billion copier division because of several years of losses and stiff competition from Xerox.
Kodak, the world's largest photographic firm, will supply the machines for Danka to sell while retaining manufacturing and research-and-development operations employing nearly 3,000 people. The deal is expected to close by year's end.
Danka will offer jobs to Kodak's 10,400-strong copier sales force worldwide, including 6,000 employees in the United States.
Danka is also assuming some assets and operating liabilities, while Kodak will retain $123 million in receivables stemming from long-term copier leases in Britain and Canada.
The acquisition will push Danka's annual revenue from $1.24 billion to $3.5 billion, while revenue from service, supplier and rentals would more than double to $2 billion.
- Associated Press
LENGTH: Short : 36 linesby CNB