MEDIA-SCIENCES SELLS TONER BUSINESS TO KATUN CORP

[Anonymous]

http://www.prnewswire.com/news-releases/media-sciences-sells-toner-business-107471408.html

MEDIA-SCIENCES SELLS TONER BUSINESS TO KATUN CORP
 OAKLAND,
N.J., Nov.  2010 — Media Sciences International, Inc.  a leading
independent manufacturer of color toner cartridges and solid inks for
color business printers, today announced the sale of its toner business
to Katun Corporation, a Monomoy Capital Partners portfolio company.On
November 8, 2010, Media Sciences Inc. (the Seller”), a subsidiary of the
Media Sciences International, Inc., entered into an asset purchase
agreement (the “APA”) with Katun Corporation and one of its subsidiaries
(“Katun”).  Under the terms of the APA, Katun purchased assets used in
the Seller’s toner business, including, inventory, fixed assets, and
intangibles (including the Seller’s business name and trademarks) for
approximately $11 million (which amount is subject to adjustment based
on the value of the Seller’s inventory as finally determined within 30
days from closing).  Katun also assumed the liability for all of
Seller’s unfulfilled purchase orders, for a defined amount for returns
and allowances, and for any post-closing liabilities under all assigned
customer and vendor contracts arising out of the Seller’s toner
business, but not for any of Seller’s other liabilities.  
Contemporaneously, Katun and the Seller also entered into a master
distribution agreement by which the parties agreed that Katun will be
the exclusive worldwide distributor of the Seller’s solid ink products
for use in Xerox color printers for a period of 3 years.  The parties
also entered into a license agreement allowing the Seller and its
affiliates to continue using its business name and websites for up to
two years.

The Company also announced changes in its leadership
team, including the departure of Michael W. Levin and Robert Ward, the
Company’s former CEO and COO, respectively.  Effective immediately, Marc
Durand was appointed CEO.  Mr. Durand was formally VP of Operations for
the Company.  In addition, the Company’s CFO, Marc Applebaum, will
leave the Company at the end of the calendar year.  Denise Hawkins, the
Company’s long time controller, will become CFO.Also on November 8,
2010, the Company repaid and terminated its senior credit facility with
Sovereign Bank.  The Company expects the remaining business, while
smaller, will be well capitalized, profitable and will generate positive
free cash flow.  

Michael Levin, commented on the sale, “We
decided upon and executed this sale to preserve and enhance shareholder
value.  It was the right decision for all constituents including
shareholders, customers, employees and vendors.   In Katun, we found a
company that shares our core values of high quality and IP respect and
brings the scale necessary for this business.  As a result, we fully
expect that the MSI business will thrive within the Katun
infrastructure.”The Company intends to host a conference call at a later
date to discuss the Company’s future opportunities.

About the Company:
Media
Sciences International, Inc. is the leading independent manufacturer of
new build solid ink for office color printers. As the premium quality
solid ink alternative to the printer manufacturer’s brand, Media
Sciences’ 100% newly manufactured solid ink products for use in Xerox®
color printers deliver significant savings when compared to the printer
manufacturer’s brand.

http://www.prnewswire.com/news-releases/media-sciences-sells-toner-business-107471408.html

[Author]

November 17, 2010 at 8:15 AM