Kodak completes sale of remote sensing systems to ITT
Eastman Kodak Company announced that it has completed the sale of its Remote Sensing Systems (RSS) operations to ITT Industries Inc. for $725 million in cash...
ROCHESTER, N.Y.--(BUSINESS WIRE)--Aug. 13, 2004--Eastman Kodak Company announced that it has completed the sale of its Remote Sensing Systems (RSS) operations to ITT Industries Inc. for $725 million in cash.
RSS was part of Kodak's Commercial & Government Systems' operation within the Commercial Imaging Group and its customers include NASA, other U.S. government agencies, and aerospace and defense companies. Kodak's RSS operation, including Research Systems, Inc. (RSI), had sales last year of about $425 million.
All 2,000 RSS and RSI employees will transfer to ITT Industries, with Rochester as the headquarters for ITT's new Space Systems Division. James Manchisi, president of RSS, will join ITT Industries Space Systems Division as President, reporting to Henry J. Driesse, President, ITT Industries, Defense.
"The sale of RSS is consistent with Kodak's digitally oriented strategy to focus on the consumer, commercial and health imaging markets," said Daniel A. Carp, Chairman and Chief Executive Officer, Eastman Kodak Company. "By selling RSS, we have sharpened our focus on our key growth markets, and have provided RSS employees with the opportunity to work for a company that serves the aerospace and defense markets."
This action by Kodak further aligns its product portfolio with its business strategy. The proceeds of the sale will further strengthen the company's financial position and flexibility during its business model transition.
Net of tax and transaction costs, but subject to post-closing adjustments, Kodak expects to realize about $475 million in cash. The sale of RSS will result in an after-tax gain of about $390 million, excluding the potential impact of any settlement or curtailment gains or losses that may be incurred in connection with pension and postretirement benefit plans.
Headquartered in White Plains, New York, ITT Industries supplies advanced technology products and services in key markets including: defense communication, opto-electronics, information technology and services; fluid and water management including water treatment; electronic interconnects and switches; and other specialty products. The company generated $5.63 billion in 2003 sales and employs about 36,000 people around the world.