The Pension Protection Fund (PPF) has concluded the sale of Kodak Alaris to Kingswood Capital Management.
This does not make sense (quite apart from Professional Pension’s keyboard losing its “D”
The lifeboat fund said this was “normal practice” for pension scheme assets it takes on and said it is please to have secures a good outcome for all parties”.
The PPF said it will continue to support members of the pension plan “now and in the future”.
Yes you did read that right, the Kodak pension scheme, skillfully maneuvered into the PPF by Ross Trustees (now IGG) has been sold to private equity “because it performed well“.
We can only assume that the PPF’s investment philosophy is to stag stocks that make them a quick buck rather than be a source of patient capital. Kodak was a basket case, thanks to Ross and Bradshaw it has survived and is now prospering under the ownership of the PPF.
The PPF tells us that it wants to be a force in the land. Why is it disposing of this fine company to a private equity behemoth>
Kodak Alaris tells us it is (or was)
UK owned, with a global reach, supporting customers in more than 100 countries. Our major office locations are in UK, Germany, US, Mexico, and China. Our legacy is rich: born from one of the world’s most iconic brands, we have a strong heritage in innovation, and a sharp focus on bringing technology to market. Our future is powered by our employees’ creativity. Expect a lot from Kodak Alaris and know that we expect a lot of ourselves and the performance of the company.
Kingswood Capital Management is a Los Angeles based Private Equity firm,
Why is a UK pension scheme disposing of a profitable and successful turnaround to an American PE firm? Has the PPF so little ambition that it does not believe its ownership can be more beneficial to this company (wbo’s staff are being paid lifetime income by it) than Kingswood?
Wbat does this tells us about the PPF’s aspiration to be a consolidator contributing to the turnaround of the UK economy?
This is a profitable business
A business that through Alaris and Moments has turned around its fortunes. It may quote its numbers in dollars but it is based in Hemel Hempstead and was owned by a Pension Fund in Croydon.
I am not alone in feeling this way, when a friend wrote me
Interesting to note the PPF sale of Kodak assets – can’t help but feel that a capital backed run on deal would have been better for members!
Pensions have responsibilities for sponsors as well as vice-versa!
