Press release: Tel Aviv, Israel ? January 5, 2004.
Scitex Corporation Ltd. (Nasdaq & TASE: SCIX), announced today the closing of the previously disclosed sale of the business of Scitex Digital Printing, Inc. (SDP) to Eastman Kodak Company (NYSE: EK).
In addition, effective today, Raanan Cohen has been appointed as interim President and Chief Executive Officer of Scitex Corporation, replacing Mr. Nachum (Homi) Shamir who will be joining Kodak in connection with the transaction.
Sale of SDP to Kodak Under the terms of the purchase agreement, Kodak acquired from Scitex substantially all the assets of SDP, a wholly-owned US subsidiary of Scitex and a leader in ultra-high-speed digital printing technology, for $250 million in cash and assumed substantially all of SDP?s liabilities related to the ongoing business.
In addition, as part of the transaction, Scitex retained $12 million of SDP’s cash balance at closing. In the first quarter of 2004, Scitex expects to recognize a capital gain (net of taxes) in its financial statements of approximately $60 million as a result of the closing of the transaction.
Ami Erel, President and CEO of Discount Investment Corporation Ltd. (DIC) and Chairman of Scitex Corporation, commented: ?Following the sale of SDP, Scitex Vision becomes Scitex?s sole major subsidiary. I am confident that Mr. Dov Ofer, President and CEO of Scitex Vision, will continue to lead Scitex Vision to a successful future. In light of Scitex’s strong cash position following the SDP sale, we believe that we will further enhance shareholder value with our planned cash distribution and with the retention of sufficient funds to allow us to consider investments that will build a successful future for Scitex.?
Mr. Avi Fischer, Deputy Chairman of IDB Holding Corporation Ltd., Co-CEO of Clal Industries and Investments Ltd. and a member of Scitex’s Board of Directors, added: “I would like to take this opportunity to thank the management and employees of SDP for their invaluable contributions to the company throughout the years, and wish them all success in their new roles with Kodak. I am also pleased to announce the appointment of Mr. Shamir as a member of the Board of Directors of Scitex, enabling Scitex to benefit from his continued assistance and involvement in the future.?