According to a press release, Kodak customers will continue to receive the same Kodak photochemical products for the processing of film, paper and printing plates, made by the same skilled team of technical and production staff, in the same facility, and according to Kodak standards. As part of the agreement, about 150 employees now working in the operation will transfer to a Champion subsidiary, Champion Photochemistry Inc. Kodak will continue to market and distribute the products, and ordering procedures will also remain unchanged.
Champion Chairman Fraser Mason noted that the agreement builds on the success of a similar cooperation that started in February 2006, when Champion acquired Kodak‘s photochemicals manufacturing operations in Chalon, France. According to Kodak, to company will incur restructuring related charges totalling approximately US-$ 27 million in conjunction with the agreement. This includes employee termination benefits of approximately US-$ 7 million, building and plant equipment accelerated depreciation and inventory write-offs of approximately US-$ 13 million, and other exit costs of approximately US-$ 7 million. These actions are expected to be complete by December 31, 2007.