Eastman Kodak Co. last month moved to acquire full ownership of Kodak Polychrome Graphics by buying out joint venture partner Sun Chemical Corp. in a deal worth $817 million.

Kodak and Sun each owned 50 percent of KPG under terms of a venture established in 1998. Kodak said the transaction will increase immediately its sales and earnings while expanding the distribution network for its graphics communications unit.

In addition to selling its computer-to-plate systems to the newspaper industry, KPG’s client base also includes commercial and packaging printers. KPG, based in Norwalk, Conn., employs about 4,000 workers.  

“This transaction, which is immediately accretive to earnings, is another decisive step in the implementation of our digitally oriented growth strategy and strengthens Kodak’s ability to compete in the fastest-growing segments of the industry,” said Daniel A. Carp, chairman and chief executive officer of Eastman Kodak in a statement.

The transaction calls for Kodak to redeem all of Sun Chemical’s shares of KPG by providing $317 million in cash at closing, $200 million in cash in the third quarter of 2006 and $50 million in cash annually from 2008 through 2013, for a total of $817 million. The deal, which Kodak said it would fund through internally generated cash flow, is expected to close in April.