Imation Closes Acquisition Of TDK Brand

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Imation Corp announced that it has completed the previously announced acquisition of the TDK brand recording media business.

Imation Corp announced that it has completed the previously announced acquisition of the TDK brand recording media business and use of the TDK brand name for recording media products worldwide, for a combination of Imation common stock and cash.

Imation issued to TDK Corporation 6.8 million shares of Imation common stock, representing 16.6 percent of shares outstanding after issuance of the shares to TDK. Additional cash consideration and customary closing costs and advisory fees brought the total cost to Imation to approximately $260 million. Additional cash consideration of up to $70 million could be paid by Imation to TDK Corporation contingent upon future financial performance of the acquired business.

By agreement, TDK's ownership stake will not exceed 22 percent of Imation common stock on a fully diluted basis. TDK becomes the largest shareholder of Imation and, under terms of the transaction, has the right to nominate a representative to serve on the

Imation Board of Directors.

Frank Russomanno, Imation President and CEO said: "The acquisition of the highly respected TDK brand for recording media accelerates our transformation to a brand and product management company as we grow our portfolio across the four pillars of storage and extend brands selectively into new categories. We are excited about adding the TDK brand recording media products to our commercial and consumer product portfolio. This financially accretive transaction builds shareholder value for Imation and the two companies have set the foundation for a long-term strategic relationship ."

Highlights of the completed transaction include the following:

- Imation purchased a combination of assets and stock of TDK's recording media business and use of the TDK brand name for current and future recording media products including magnetic tape, optical media, flash media and accessories.

- The TDK brand recording media business operates