http://www.prnewswire.com/news-releases/media-sciences-international-to-acquire-china-based-imaging-supply-manufacturer-92177429.html
MEDIA SCIENCES INT’L ACQUIRES
MANUFACTURER IN CHINA
Media
Sciences International to Acquire China Based Imaging Supply
Manufacturer
OAKLAND, N.J., April 2010– Media
Sciences International, Inc. (Nasdaq: MSII) today entered into
agreements to acquire Master Ink Company, Ltd., a China based
manufacturer of toner cartridges, inkjet printer cartridges, inkjet
refill kits and patented, next generation automatic ink refill systems.
The agreement with Master Ink Company, Ltd. and its affiliates is to
acquire substantially all of Master Ink’s assets including its People’s
Republic of China based manufacturing facility.Consideration for the
acquisition includes $1.15 million in cash ($250,000 due at closing, the
balance with accrued interest due on the second anniversary of the
closing), a 10% override on Master Ink revenues until the note is repaid
and one million shares of Media Sciences International common stock.
The Company expects the acquisition to be accretive to its earnings in
the first quarter following the close. Closing is expected to occur in
early summer.
Media Sciences’ President and CEO Michael Levin
commented, “This is a transformative acquisition for Media Sciences as
it provides the Company with many strategic benefits that significantly
increase our competitiveness. Specifically, the acquisition provides us
with the lower cost manufacturing platform we have been seeking to
develop, while increasing our ability to control quality and our
intellectual property. In addition, we expect the acquisition to
accelerate our time to market and increase our rate of new product
development, while reducing new product capital expenditures. The
acquisition provides the Company with the control and cost structure to
develop more products more quickly, build quality into products instead
of checking it after a product has been built, better manage our
inventories, be more flexible to meet changing customer demands, pursue
markets that have been otherwise impractical, and regain the operating
leverage and cash generation that are inherent in this recurring
business of printer supplies.”
Master Ink’s Key Highlights
* Product Lines – Toner cartridges, inkjet refill kits and inkjet
cartridges for postage machines
* Capabilities – In house tool
making, injection molding, wire forming, stamping and vacuum forming
* Revenues – Approximately US$3 million
* Gross Margins –
Approximately 38%
* Operating Expenses – Approximately US$1.1
million (pre-acquisition)
* Employees – Approximately 140
Mr.
Levin continued, “We have been working with Master Ink to develop
tooling for a broad range of Media Sciences’ toner based products and as
a result, upon closing we expect to enjoy an immediate reduction in the
cost of our existing toner based product line. We are confident this
acquisition will significantly improve our business model, and we look
forward to concluding the acquisition in the coming months.”The Company
will include a discussion of the acquisition in its quarterly earnings
conference call to be held on May 14, 2010.
About the Company:
Media
Sciences International, Inc. is the leading independent manufacturer of
new build solid ink and color toner cartridges for office color
printers. As the premium quality color toner and solid ink alternative
to the printer manufacturer’s brand, Media Sciences’ 100% newly
manufactured color toner and solid ink products for use in Dell®, Konica
Minolta®, OKI®, Ricoh®, Samsung®, and Xerox® and many other color
printers deliver significant savings when compared to the printer
manufacturers brand.
Web site: http://www.mediasciences.com