Samsung announced about a month ago that it had agreed to sell its printing division to HP for $1.05 billion. The move comes amid restructuring efforts over at Samsung as the company seeks to free up cash and focus more on its core businesses. The sale will help the company do just that while it’s going to further cement HP’s position as a market leader. The deal is expected to be closed by mid-2017, Samsung has now created a separate entity called S-Printing Solution for its printing division. It’s going to operate it until the deal is closed and control of the subsidiary is formally transferred to HP by mid-2017.
The new subsidiary is going to be lead by Kim Ki-ho who was the leader of Samsung’s printing division as an executive vice president. The deal gives Samsung the right to sell all HP inkjet products under the Samsung brand in South Korea. HP will be getting the subsidiary’s research facility in Suwon, Gyeonggi Province, a production facility in China as well as more than 50 sales operations globally as part of this deal. HP has already agreed to hire all employees and has said that there will be no layoffs in South Korea. The deal is expected to go through by mid-2017 as it has already been given the greenlight by Samsung’s shareholders.
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