Imation Closes Memcorp Purchase
By Staff -- TWICE, 7/16/2007
OAKDALE, MINN. — Imation completed is announced acquisition of the assets of Memcorp and Memcorp Asia Ltd. from privately held Hopper Radio of Florida.
The purchase price was $27.3 million in cash and $37.5 million in three-year notes, plus a potential earn-out of up to $20 million over three years, dependent on financial performance of the purchased business. Imation also expects to invest approximately $15 million in additional working capital after the acquisition closes.
Ronald Zinke, Imation's consumer division VP for the Americas, will lead the Memcorp organization, which includes sourcing, marketing and distribution operations. Approximately 60 Memcorp employees from its U.S. and Hong Kong operations are expected to transfer to Imation.
Imation expects the transaction to be financially accretive, contributing $10 million to $12 million in operating income, and adding approximately $200 million in annual revenue in the first full year of operation.
