OAKLAND, N.J., Nov. 12, 2010 /PRNewswire via COMTEX/ -- Media Sciences International, Inc. (Pink Sheets: MSII), 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.
(Logo: http://photos.prnewswire.com/prnh/20020604/NYTU016LOGO ) (Logo: http://www.newscom.com/cgi-bin/prnh/20020604/NYTU016LOGO ) 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(R) color printers deliver significant savings when compared to the printer manufacturer's brand.
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For more information on the Company, its products, and its programs, visit www.mediasciences.com, E-mail firstname.lastname@example.org, or call 201.677.9311.
Web site: http://www.mediasciences.com SOURCE Media Sciences International, Inc.
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