Imation has announced that it has completed the $260 million
acquisition of the TDK brand recording media business. As part of the deal, the TDK Corporation has been issued 6.8 million shares of
common stock, making them Imation's largest shareholder.
Imation Corp. (NYSE: IMN) today announced that it has
completed the previously announced acquisition of the TDK brand recording media business and use of the TDK brand name for recording
media products worldwide, for a combination of Imation common stock and cash.
Imation issued to TDK Corporation 6.8 million shares
of Imation common stock, representing 16.6 percent of shares outstanding after issuance of the shares to TDK. Additional cash
consideration and customary closing costs and advisory fees brought the total cost to Imation to approximately $260 million. Additional
cash consideration of up to $70 million could be paid by Imation to TDK Corporation contingent upon future financial performance of the
acquired business.
By agreement, TDK's ownership stake will not exceed 22 percent of Imation common stock on a fully diluted
basis. TDK becomes the largest shareholder of Imation and, under terms of the transaction, has the right to nominate a representative to
serve on the Imation Board of Directors.
According to the press release, Imation will continue to supply TDK brand
products to the market. TDK will also continue R&D and manufacturing operations for recording media and will supply Imation as well as
its other OEM customers. Full details can be found here.
