ROCHESTER, N.Y., and PHILADELPHIA, April 19, 2007 -- Eastman Kodak Co. is selling a business unit that manufactures films for flat-panel displays to Rohm and Haas Co., a maker of electronic materials and chemicals, the companies announced yesterday. Financial terms of the deal were not disclosed.
Kodak's business unit provides display manufacturers with light management films, which manage available light to improve the brightness and look of LCD panels in devices such as PDAs, cell phones, computer screens and TVs.
Under terms of the acquisition, Philadelphia-based Rohm and Haas will acquire manufacturing assets in Rochester, as well as intellectual property (IP) such as patents. Kodak will license to Rohm and Haas other IP and supply it with key raw materials. About 125 employees associated with the business in Rochester, Taiwan, China, Japan, and Korea are expected to join Rohm and Haas Electronic Materials, the companies said in a joint statement.
Kodak said the light management films unit, which began as a startup a few years ago, has started to experience commercial success because of the increasing demand for items such as LCD TVs, but needed significant additional capital. As the company was pursuing funding alternatives, Rohm and Haas expressed interest in buying the business.
Rohm and Haas said the acquisition is the first step in creating its flat-panel display technologies business.
The transaction is expected to close in the first half of this year, the companies said.