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Imation Acquires TDK Brand Recording Media Business

Discussion in 'News' started by malware, Apr 19, 2007.

  1. malware New Member

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    Imation Corp. and TDK announced today that they have reached a definitive agreement under which Imation will acquire TDK brand world wide recording media business and use of the TDK brand name for recording media products, for $300 million in a combination of Imation common stock and cash with potential for payment of up to an additional $70 million based on future financial performance of the acquired business. TDK will retain its R&D, manufacturing and OEM business. The boards of directors of both companies have approved the transaction.

    Highlights of the proposed transaction include the following:
    • Imation will acquire TDK brand recording media business and use of TDK brand name for current and future recording media products including magnetic tape, optical media, flash media and accessories.
    • At closing, TDK will receive approximately $280 million in Imation common stock, representing approximately 17 percent of shares outstanding, and $20 million in cash subject to certain conditions. This transaction will make TDK the largest shareholder of Imation and TDK will have the right to nominate a representative to serve on the Imation Board of Directors. By agreement, TDK's ownership stake will not exceed 22 percent of Imation common stock on a fully diluted basis.
    • TDK brand recording media business operates globally, with major operations in Europe, Japan, the United States, and Asia. A number of TDK brand recording media employees are expected to transfer to Imation upon close. The transaction is expected to close in the third calendar quarter of 2007, subject to customary closing conditions.
    • TDK will continue R&D and manufacturing operations for recording media products including audio, video and data storage tape, and Blu-ray optical discs. TDK will supply Imation as well as its other OEM customers.
    • The transaction includes a Supply Agreement providing uninterrupted and continuing supply of TDK brand products to the market.
    Frank Russomanno, Imation President and CEO said: "With this transaction Imation expands our portfolio of brands and builds on our four pillars of storage. Imation is bringing the well known TDK brand into our growing portfolio of strong consumer brands as well as adding the highly respected TDK brand recording media products to our commercial and consumer product portfolio."

    Source: Imation
  2. WarEagleAU

    WarEagleAU Bird of Prey

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    Well, at least they keep the ODD making part and R&D. I have mixed reviews on Imations, though most of my burns at various speeds (around 80% of burns, so not bad) were working, 20% were coasters. I dont like Coasters. However, I have never had a problem with TDK media, in fact, I believe they are Taiyo Yuken (SP?) media made, I think, which is considered the best. Im not sure if Imation will make the media or, as it states, TDK will supply them with the media and Imation gets the money under the TDK brand name. Thanks for the information.

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