Imation, a company that sells media for storing computer data, will sell a printing-related division to Kodak Polychrome Graphics for $50 million in cash.
The sale of the division, expected to close by the end of 2001, is part of Imation's effort to focus on its data-storage business, the company said in a statement Thursday. The division had revenue of about $223 million for 2000, the company said.
The division provides software and services for checking that printed colors match what was intended. The sale includes equipment and sundry goods from the color-proofing section of the company's manufacturing plant in Weatherford, Okla. About 500 Imation employees are expected to be transferred as part of the deal.
Kodak Polychrome Graphics, which sells supplies and services for the graphic arts and printing industry, was established in 1998 as a joint venture between Eastman Kodak and Dainippon Ink & Chemicals.
Imation sells disks, tapes, blank CDs and other computing media. The
company, which reports financial results for its fiscal third quarter before markets open Monday, is embroiled in a legal battle with Quantum, which Imation accuses of monopolizing the DLT (Digital Linear Tape) market. Quantum, for its part, has filed a countersuit claiming Imation has misappropriated trade secrets.
Quantum is scheduled to report financial results for the second quarter of its fiscal 2002 after markets close Wednesday.