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 user 2010-05-03 at 12:15:00 pm Views: 60
  • #23825

    Sciences International to Acquire China Based Imaging Supply
    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

    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:
    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.
    Web site: