Tuesday, April 21, 2009

Canadian company part of group that buys Polaroid

Asset manager Counsel Corp. said Friday that its equity investment arm is part of a group that has bought Polaroid Corp., the U.S. company that once made instant cameras.

Knight's Bridge Capital Partners is part of a group that bought Polaroid out of bankruptcy for $87.6 million US. A Knight's Bridge fund put up more than 30 per cent of the money to close the deal, Counsel said in a news release.

The group is headed by Gordon Brothers Brands LLC of Boston and private equity firm Hilco Consumer Capital L.P. of Toronto, Hilco said. A U.S. bankruptcy court approved the sale of substantially all of Polaroid's assets, including the brand, intellectual property and inventory.

"Polaroid already has a very interesting portfolio of innovative and patented technologies that represent both an initial revenue stream and a platform for other new products and product categories," said Kenny Finkelstein, Knight's Bridge CEO.

The buyers plan to licence Polaroid products so they don't have to invest in production or inventory.

Polaroid ended film production in early 2008, shut down three factories and laid off 450 workers.

Counsel, a penny stock traded on the TSX, closed up eight cents at 48.5 cents.