The Pension Protection Fund (PPF) has concluded the sale of Kodak Alaris to Kingswood Capital Management for an undisclosed amount.

The Kodak Pension Plan Number 2 (KPP2) was transferred to the PPF in 2020, with Kodak Alaris, which was an asset of the scheme, being restructured.

Following this restructuring, Kodak Alaris “subsequently performed well”, the PPF stated, which led to its decision to sell the business.

KPP2 was formed after Kodak Limited’s parent company, Eastman Kodak, filed for bankruptcy in 2012, with the company no longer able to sponsor the original pension scheme.

The scheme trustees acquired a number of businesses from Eastman Kodak, grouped under the name of Kodak Alaris. As a result, the scheme’s sponsoring employer was a special purpose company with no trading assets, with Kodak Alaris instead being an asset of the scheme.

Following its sale of the business to Kingswood, the PPF stated that it was “normal practice” for pension scheme assets it takes on to be sold and, following a “rigorous process”, the PPF was “pleased to have secured a good outcome for all parties”.

“KPP2 members can be assured it will have no effect on the compensation they receive, and we will continue to support them now and in the future,” the PPF said.

Lincoln International and Eversheds Sutherland served as Kodak Alaris’ advisers for the deal, while Kirkland and Ellis, LLP served as legal adviser to Kingswood.

Kodak Alaris has two business units, Kodak Moments and Kodak Alaris Business Unit.

In a joint statement, Kodak Moments president, Nicki Zongrone, and Kodak Alaris Business Unit president, John Blake, said: “The investment by Kingswood Capital is a clear endorsement of the enduring value of our offerings and a testament to our team’s hard work.

“We are delighted to have secured the backing of new owners who share our vision for the future of our business. We look forward to starting this new chapter guided by Kingswood’s robust operational expertise.”

Kingswood managing director, Andrew Kovach, added: “We are thrilled to partner with the Kodak Moments and Kodak Alaris Business Unit management teams and global employee base.

“Both businesses have an outstanding reputation and heritage as leaders in their respective photography and imaging fields, and it is an honour to work with two companies held in such esteem.”

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