Privately-held French replicator MPO International has entered into a joint venture with US management solution company Zomax to consolidate the two companies' separate Ireland media replication businesses, manufacturing operations and management teams into one entity.

This new joint venture does not include Zomax' well-performing contact and programme management center located in Santry, Ireland.

Zomax and MPO formed the joint venture to create one profitable entity by capitalizing on the synergies that they believe the two consolidated operations will create. This new venture will support the existing media manufacturing needs of both Zomax Limited's and MPO Ireland's clients.

In addition, Zomax and MPO intend to sign a strategic sales and marketing agreement to pursue new growth opportunities, including leveraging the European capabilities of MPO for production and fulfillment for Zomax
customers in the IT market segment and developing opportunities for Zomax' contact center operations in Ireland with MPO's strong base of entertainment customers within Europe.

Under the terms of the agreement, Zomax will own 51% of the joint venture, with MPO owning the remaining 49%. Each company will contribute an undisclosed level of manufacturing assets, inventory and cash to the joint venture. Zomax will provide the general, financial and human resource management leadership for the joint venture and MPO will assume responsibility for sales, business development and technical support for the venture.

Zomax intends to consolidate its Ireland-based production operations into MPO's existing production facility in the greater Dublin area and to exercise a lease exit right in its Clondalkin production facility. The closure of the Clondalkin facility is expected to result in a cash restructuring charge of approximately $1.8 million for lease exit costs and facility transition costs that will be incurred over the balance of 2006.

Story filed 10.05.06