Eastman Kodak Company announced yesterday that it has agreed to sell its Remote Sensing Systems (RSS) operation to ITT Industries, Inc for $725 million in cash.
Under the terms of the agreement, ITT Industries will acquire the assets and business of RSS, including the stock of Kodak’s wholly owned subsidiary, Research Systems, Inc (RSI).
RSS is a part of Kodak’s Commercial & Government Systems’ operation within the Commercial Imaging Group and provides specialised imaging solutions to the aerospace and defence community. Its customers include NASA, other US government agencies, and aerospace and defence companies. RSS and RSI had sales last year of approximately $425 million.
‘As we sharpen our focus on the commercial, consumer and health imaging markets, we will look to divest lines of business that do not fit tightly with our growth strategy,’ said Daniel A. Carp, Chairman and Chief Executive Officer, Eastman Kodak Company.
He added: ‘By selling RSS, we have taken another aggressive step toward remaking Kodak, while the employees of RSS will enjoy the benefits of working for a company whose core business is serving the aerospace and defence market.’
Kodak expects that all 1,800 RSS and RSI employees will transfer to ITT Industries.