Eastman Kodak Company (NYSE: EK) has announced that it has enteredinto an agreement to purchase Laser-Pacific Media Corporation (NasdaqNM: LPAC), a leading Hollywood-based post-production company with $31.8million in revenues in fiscal year 2002. Under terms of the agreement,Kodak will acquire the outstanding shares of Laser-Pacific at a priceof $4.22 per share. The purchase price, totaling $30.5 million, will bepaid in Kodak stock or cash at Kodak’s option. As of March 31,2003, Laser-Pacific had $3.3 million in net debt.
Laser-Pacific will operate as a wholly owned subsidiary of Kodak,reporting to the company’s Entertainment Imaging products andservices operation. Emory Cohen, co-founder and president ofLaser-Pacific, will lead the subsidiary.
Founded in 1990, Laser-Pacific is well recognized in the Hollywoodentertainment community. A winner of six Emmy awards for outstandingachievement in engineering development, Laser-Pacific provides a fullspectrum of post-production services for television, home video andmotion pictures. These services include high-quality film processing,state-of-the-art film transfer, editing, mastering, digital previewservices, and DVD compression and authoring.
The acquisition will allow Kodak to establish a major presence intelevision post-production and further extends the company’scurrent digital services capabilities in the feature film market.
“Our customers have been encouraging us to participate morebroadly in the services business,” said Eric Rodli, president,Entertainment Imaging products and services, and senior vice president,Eastman Kodak Company. “Consistent with our history of developinghardware and software tools that helped set industry standards fordigital film scanning, recording, and image manipulation, thisacquisition supports our growth strategy of expanding the benefits offilm and making digital technology more useful to customers.”
“This is a natural alliance,” said Cohen. “Thereis a mutual commitment to supporting the creative community byproviding products and services which enable the use of film anddigital tools in their highest quality and most efficient forms.Kodak’s depth of technology and global brand presence, combinedwith Laser-Pacific’s history of innovation, service andoperational efficiencies, will create a service organization poised tomeet the expanding needs of our industry.”
Laser-Pacific and Cinesite, Kodak’s visual-effects and digitalrestoration and mastering subsidiary, will make up the hub ofKodak’s worldwide entertainment imaging services group led byGeneral Manager Bertrand Decoux.
“The motion picture industry is at a crossroads,” Decouxsaid. “The convergence of film, digital and hybrid imagingtechnologies are changing the way movies are produced and distributed.The acquisition of Laser-Pacific is a logical combination. By playing alarger role in the service sector, we can ensure that the support ourcustomers need is both accessible and affordable, while maintaininghigh image quality standards and creating work of greatervalue.”
“This acquisition is consistent with Kodak’s commitmentto offer a full array of the highest quality services available in themotion picture and television industries,” Decoux said.“Cinesite London will provide state-of-the-art digital visualeffects, practical effects, and models and miniatures services, whileCinesite Hollywood and Laser-Pacific will concentrate on providinghigh-quality digital mastering and restoration services for featurefilms. In addition, Laser-Pacific will continue to provide the episodictelevision market with its award-winning post-productionservices.”
“This blending of capabilities will benefit both our customersand our staff,” Cohen said. “We will provide Kodak withunique insights into the needs of the industry, strong customerrelationships, and proven know-how. At the same time, we will benefitgreatly from access to Kodak color science and imagingtechnology.”
Kodak is the world leader in providing film, digital and hybridmotion imaging products, services and technology for the television,feature film and new media industries.
The transaction is subject to the approval of Laser-Pacific’sstockholders, SEC regulatory compliance and certain other customaryconditions. The parties expect that the acquisition will close early inthe fourth quarter of 2003. Kodak does not anticipate that theacquisition will have a material impact on its earnings.
For more information, visit www.kodak.com/go/motion.