Calling it a "non-core business," Eastman Kodak Co. on Monday agreed to sell its Remote Sensing Systems (RSS) operation and the stock of its wholly owned subsidiary, Research Systems Inc. (RSI), to ITT Industries Inc.
The proposed divestitures for $725 million in cash are part of Kodak's blueprint to align its product portfolio and - in the words of Chairman and CEO Daniel A. Carp - "sharpen [Kodak's] focus on the commercial, consumer and health imaging markets."
RSS is a part of Kodak's Commercial & Government Systems operation within the company's Commercial Imaging Group. Its customers include National Aeronautic and Space Administration (NASA), other U.S. government agencies, and aerospace and defense companies. Kodak expects that all 1,800 RSS and RSI employees will transfer to ITT Industries and that Rochester will become the headquarters for ITT's new Space Systems division.
"By selling RSS," added Carp in a prepared statement, "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 defense market."
RSS President James Manchisi will join ITT as president and general manager of the ITT Industries Space Systems division.
Kodak's RSS operation, including RSI, posted sales of approximately $425 million in 2003.