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 user 2010-11-17 at 8:15:50 am Views: 100
  • #24007

    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:
    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.