OAKLAND, N.J., April 27 /PRNewswire-FirstCall/ -- 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.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020604/NYTU016LOGO
)
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.
Forward Looking Statements
This press release contains certain forward-looking
statements about our goals and prospects within the meaning of the
Private Securities Litigation Reform Act. These statements are
based on management's current beliefs and expectations about future
events and financial trends that may affect our financial
condition, results of operations, business strategy and financial
needs and are subject to risks and uncertainties. Actual
results may differ materially from those included or implied in
these statements due to a variety of factors, including the risk
that the acquisition will not proceed as anticipated or that
certain pre-closing and post-closing adjustments to the terms and
conditions will be needed, and those factors identified in our
Annual Report on Form 10-K for the year ended June 30, 2009, on file with the Securities and
Exchange Commission. Any forward-looking statements contained in
this release speak only as of the time made and we assume no duty
to update them, whether as a result of new information, unexpected
events, future changes, or otherwise.
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.
For more information on the Company, its products, and its
programs, visit www.mediasciences.com, E-mail
info@mediasciences.com, or call 201.677.9311.
Web site: http://www.mediasciences.com
SOURCE Media Sciences International, Inc.