Imation Corp, a worldwide leader in removable data storage media, is to acquire media manufacturer Memorex International in an all-cash transaction for $330 million.

Additional cash consideration ranging between $5 million and $45 million would be paid out over a period of up to three years after close, contingent on financial performance of the purchased business. The Boards of both companies have approved the transaction.

"This acquisition is a major strategic milestone for Imation, as we implement our profitable growth strategy. It is also a win-win for both companies' customers and shareholders," said Bruce Henderson, Imation Chairman and CEO. "We are gaining a powerful consumer brand and global market share leader in recordable CDs and DVDs as well as an experienced management team under the leadership of Mike Golacinski.

Michael Golacinski, President and CEO of Memorex International, Inc, will head up Imation's consumer business, maintaining the Memorex headquarters in Cerritos, California.

In Memorex's fiscal 2005, ended March 31, the company reported revenue of $430 million and operating income of $30 million. In the subsequent two quarters, ending September 30, 2005, Memorex's revenue totaled $205 million and operating income totaled $14 million.

Imation also announced it has begun its scale-up of manufacturing for HD DVD and Blu-ray optical recordable media in preparation for product introduction in early 2006. The company invested more than $10 million in 2005 in research, development and modular manufacturing capabilities to position Imation among the industry leaders delivering the newest high-capacity optical formats to customers.

Imation pioneered the use of advanced photopolymer nano-replication for stamper production, the next manufacturing stage for optical discs.

Story filed 22.01.06