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 user 2010-05-03 at 12:14:19 pm Views: 60
  • #23598
    Media Sciences International to Acquire China Based Imaging Supply Manufacturer
    OAKLAND, N.J., April 2010– Media Sciences International, Inc. (Nasdaq: MSII) today entered into agreements to acquire Master Ink Company, Ltd., a China based manufacturer of toner cartridges, inkjet printer cartridges, inkjet refill kits and patented, next generation automatic ink refill systems.  The agreement with Master Ink Company, Ltd. and its affiliates is to acquire substantially all of Master Ink’s assets including its People’s Republic of China based manufacturing facility.Consideration for the acquisition includes $1.15 million in cash ($250,000 due at closing, the balance with accrued interest due on the second anniversary of the closing), a 10% override on Master Ink revenues until the note is repaid and one million shares of Media Sciences International common stock.  The Company expects the acquisition to be accretive to its earnings in the first quarter following the close.  Closing is expected to occur in early summer.

    Media Sciences’ President and CEO Michael Levin commented, “This is a transformative acquisition for Media Sciences as it provides the Company with many strategic benefits that significantly increase our competitiveness.  Specifically, the acquisition provides us with the lower cost manufacturing platform we have been seeking to develop, while increasing our ability to control quality and our intellectual property.  In addition, we expect the acquisition to accelerate our time to market and increase our rate of new product development, while reducing new product capital expenditures.  The acquisition provides the Company with the control and cost structure to develop more products more quickly, build quality into products instead of checking it after a product has been built, better manage our inventories, be more flexible to meet changing customer demands, pursue markets that have been otherwise impractical, and regain the operating leverage and cash generation that are inherent in this recurring business of printer supplies.”

    Master Ink’s Key Highlights
        * Product Lines – Toner cartridges, inkjet refill kits and inkjet cartridges for postage machines
        * Capabilities – In house tool making, injection molding, wire forming, stamping and vacuum forming
        * Revenues – Approximately US$3 million
        * Gross Margins – Approximately 38%
        * Operating  Expenses – Approximately US$1.1 million (pre-acquisition)
        * Employees – Approximately 140

    Mr. Levin continued, “We have been working with Master Ink to develop tooling for a broad range of Media Sciences’ toner based products and as a result, upon closing we expect to enjoy an immediate reduction in the cost of our existing toner based product line.  We are confident this acquisition will significantly improve our business model, and we look forward to concluding the acquisition in the coming months.”The Company will include a discussion of the acquisition in its quarterly earnings conference call to be held on May 14, 2010.

    About the Company:
    Media Sciences International, Inc. is the leading independent manufacturer of new build solid ink and color toner cartridges for office color printers. As the premium quality color toner and solid ink alternative to the printer manufacturer’s brand, Media Sciences’ 100% newly manufactured color toner and solid ink products for use in Dell®, Konica Minolta®, OKI®, Ricoh®, Samsung®, and Xerox® and many other color printers deliver significant savings when compared to the printer manufacturers brand.
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