Kodak Alaris Bought By Private Equity Firm Kingswood Capital Managment

Kodak Alaris, a spinoff company of the original Eastman Kodak business, was purchased by Kingswood Capital Management, a private equity firm.

The Alaris brand, which has been owned by the UK’s Pension Protection Fund (PPF) since 2020, sells film, photo paper, and printing assets, and it manages Kodak Moments, which operates photo printing services. Kodak Moments was probably the best known aspect of the business as it operated photo printing kiosks that can be found in retail stores in the United States. It was originally spun off from Eastman Kodak when the Kodak company filed for bankruptcy in 2012.

While Kodak Alaris manages the distribution of many Kodak films, which has boomed in popularity, the business isn’t particularly healthy and reported losses over the last few years. The UK PPF has been looking for a buyer for Kodak Alaris since last April and finally found one in private equity: Kingswood Capital Management.

Kingswood describes itself as a Los Angeles-based private equity firm focused on buyouts of middle-market businesses.

“At Kingswood, our goal is to help companies reach their full potential by providing capital, bolstering its operations, and identifying avenues to achieve growth,” Alex Wolf, Managing Partner of Kingswood, says of the acquisition. “We are excited to help continue Kodak Alaris’ strong recent performance and momentum.”

Kodak Alaris will join Kingswood’s portfolio of businesses that includes Cost Plus World Market, Save Mart, Turbo Wholesale Tires, and Canada’s MEC.

“We are thrilled to partner with the Kodak Moments and Kodak Alaris Business Unit management teams and global employee base,” Andrew Kovach, Managing Director at Kingswood says of the purchase. “Both businesses have an outstanding reputation and heritage as leaders in their respective photography and imaging fields, and it is an honor to work with two companies held in such esteem.”

Private equity firms aren’t known for their success in “saving” or improving the businesses they buy. While there are exceptions, a popular opinion is that their style of business is “gutting America”. John Oliver has dedicated at least two episodes of his show Last Week Tonight to private equity firms including one on the predatory business model of mobile home parks and the recent bankruptcy of Red Lobster. Multiple well-known businesses collapsed after private equity purchased them including Payless Shoes, KB Toys, Gymboree, Radio Shack, Brookstone, and Sears.