Both divisions have made heavy losses over the past two years, with digital racking up 43m (64m) and web a whopping 105m.

The firm has signed an deal with Kodak to transfer its digital assets, although the deal is reliant on antitrust authorities approval.

Its assets include its monochrome presses, the 50% share in the NexPress project which it shares with Kodak, as well as its wholly owned NexPress interests in Kiel, Germany.
Under the terms of the agreement Heidelberg would not compete against the new owners of its digital division for two years, and will receive 81m ($150m) from Kodak if sales targets are met in that period.

Heidelberg chief executive Bernhard Schreier said he was confident that the strategy would lead Heidelberg back to profitability very quickly.

With sales of 160.5m (240m) in the 2002/2003 financial year, Heidelbergs digital division accounted for 6% of its total turnover.

Kodak has announced that the acquisition will hit its profit for 2004. It told shareholders that expected operating earnings per share will be down to $2.05-$2.35 from its earlier estimate of $2.25-$2.75.

Heidelbergs digital arm has 2,000 employees, the bulk of whom are in Rochester. It is unknown how many will move to Kodak.

The German press manufacturer has also reached an agreement on the major issues with Goss International for the sale of its web arm, although details of the deal will be agreed in the coming weeks.

Heidelberg intends to transfer 2,100 staff, from sites in the US, France and the Netherlands to Goss International. The transfer will include Heidelbergs commercial web and newspaper press interests as well as the US web finishing arm. Heidelberg will take a stake of almost 20% in Goss International after the deal.

Story by John Davies