Kodak agrees to sell gelatin business

[December 23, 2011]  NEW YORK (AP) -- Eastman Kodak Co. says it agreed to sell its gelatin business in a move that could help take pressure off the cash-strapped company.

Kodak is selling the Eastman Gelatine business to Rousselot, a division of the Vion Food Group. Terms were not disclosed. Eastman Gelatine produces gelatin used in photographic and printing processes as well as in food, pharmaceuticals.

Kodak says it expects the sale to close within the next 30 days. Kodak warned last month it could run out of cash in a year if it doesn't raise new financing or sell assets.

The Rochester, N.Y., company also says Laura Quatela will become co-president on Jan. 1. She will work with Philip Faraci, who has been president since September 2007.

[Associated Press]

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