Imation to Acquire Memorex

Imation Corp., the provider of removable data-storage media products, has announced that it will acquire Memorex International for $330 million. Memorex's portfolio includes USB flash drives (about 10% of company revenue), magnetic and optical drives (5% of company revenue), and branded accessories (approximately 15% of company revenue), but is primarily known for its recordable CDs and DVDs (making up nearly 70% of company revenue);. Michael Golacinski, president and CEO of Memorex, will head up Imation's consumer business, maintaining the Memorex headquarters in Cerritos, CA.

“This acquisition is a major strategic milestone for Imation”?it is a win-win for both companies' customers and shareholders,” says 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”?.We are creating a new global powerhouse in the data-storage industry.”

“Now with the focus and resources of a global data storage leader behind us, we can extend our reach into new regions — particularly in Europe — enhance and expand the product portfolio and grow both brands,” says Golacinski.

Memorex was founded in 1961 as a manufacturer of recordable magnetic tape for data storage, then launched the audiocassette in 1971 (featuring its “Is it live or is it Memorex” ad campaign). Memorex's consumer business was acquired by Tandy Corp. in 1982 and then again by Hanny Holdings in 1993. The company reports that it ships 1 billion CD and DVD disks per year.

Imation Corp., based in Oakdale, MN, was a 3M storage division involved in the first commercially available magnetic tape drive in 1952. It was spun off as an independent company in 1996 and now has 2300 employees worldwide. The company's products include hard drives, flash drives, CD and DVD media, archiving appliances, specialty papers, and more.

IMATION
www.imation.com

MEMOREX
www.memorex.com