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Kodak Will Buy Some Imation Assets, Ending Trade-Secrets Lawsuit
ROCHESTER, N.Y. -(Dow Jones)- In a transaction that will end a high-profile lawsuit involving the alleged theft of trade secrets, Eastman Kodak Co. said Monday it agreed to buy most of Imation Corp.'s medical-imaging business for about $520 million in cash.
The deal includes Imation's manufacturing plants in White City, Ore., and Oakdale,Minn., as well as its Cemax-Icon unit in Fremont, Calif.
Kodak said the acquisition will resolve the lawsuit it filed late last year against Imation and Minnesota Mining & Manufacturing Co., which spun off Imation in 1996. The lawsuit charged that a retired Kodak engineer sold trade secrets, related to the advanced manufacturing of photographic film, to Italian units of 3M that are now part of Imation.
Imation will retain its manufacturing facility in Ferrania, Italy, where it will manufacture x-ray and wet laser medical imaging film for Kodak under a supply agreement for a minimum of two years.
The business being acquired by Kodak (EK) generates roughly $500 million in revenue a year, and about 1,600 Imation employees will transfer to Kodak. Kodak will integrate the acquired businesses into its Health Imaging unit and doesn't expect the transaction to hurt its cost-reduction goals.
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