Imation Announces Divestiture of its Memorex Brand and Sale of its Corporate Headquarters

 Email This Post

OAKDALE, MN – Jan. 8, 2016 — /BackupReview.info/ — Imation Corp. (NYSE:IMN) (“Imation” or the “Company”) today announced divestitures of its corporate headquarters facility in Oakdale, Minnesota for a gross purchase price of $11.5 million and its Memorex trademark and two associated trademark licenses for $9.4 million.

Both sales are consistent with the Company’s stated restructuring, wind down process, and liquidation of its legacy business assets. Previously, on October 14, 2015, Imation acquired substantially all of the equity of Connected Data, Inc. (“CD”), an emerging enterprise-class, private cloud sync and share company. The acquisition of CD augments Imation’s vision in delivering a comprehensive and secure storage, backup and collaboration ecosystem and creating a valuable standalone disk storage subsidiary.

“We are on track to completing the restructuring of our legacy businesses in Q1 2016, and I am pleased with the integration of Connected Data in our Nexsan business and continued development of the combined product strategy,” remarked Bob Fernander, Interim Chief Executive Officer.

In late December 2015, the Company also amended its cash investment policy to permit investment activity in public company stock, index funds, mutual funds, and other investment funds that offer attractive returns without significantly compromising liquidity, at all times considering the applicable risks. The Company is actively evaluating options to invest excess cash under its amended cash investment policy. The Company would welcome inbound interest directed to the Interim Chief Executive Officer from financial advisors and money management firms that are interested in making proposals to assist the Company in this endeavor.

Imation’s Board and executive team will also continue to work closely with its advisors to drive change within the Company and explore strategic alternatives to maximize shareholder value, including, but not limited to, divestitures of its non-core and non-operating assets. To that end, in August 2015, Imation formed a Strategic Alternatives Committee of its Board to work with management and make recommendations to the Board regarding the Company’s use of its excess capital, and on October 19, 2015, the Company announced that it will actively explore new alternative uses for its excess capital.

Interim CEO, Bob Fernander, will lead the evaluation and deployment of capital in conjunction with the Strategic Alternatives Committee. The Strategic Alternatives Committee has been tasked with examining opportunities to deploy Imation’s excess cash and developing initiatives for strategic value creation. The scope of the acquisition opportunities to be considered may be outside of industries that have comprised Imation’s historical focus, and may be sourced in the private and public markets. The Company generally expects to evaluate opportunities where it can acquire businesses that it can actively manage and oversee, but may make investments in opportunities that it will not control.

“We look forward to continuing the transformation of the corporation into an entity poised for sustained growth and equity value creation,” said Joseph A. De Perio, non-executive Chairman of the Board. Mr. De Perio is also a senior portfolio manager of Clinton Group, Inc., one of the Company’s major shareholders.

About Imation
Imation (NYSE: IMN) is a global data storage and information security company. Our products and solutions help organizations and individuals store, manage and protect digital content. For more information, visit www.imation.com.

Risk and Uncertainties
Certain information contained in this press release which does not relate to historical financial information may be deemed to constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties that could cause our actual results in the future to differ materially from our historical results and those presently anticipated or projected. We wish to caution investors not to place undue reliance on any such forward-looking statements. Any forward-looking statements speak only as of the date on which such statements are made, and we undertake no obligation to update such statements to reflect events or circumstances arising after such date. Risk factors include various factors set forth from time to time in our filings with the Securities and Exchange Commission including the following: Our ability to successfully implement our strategy; our ability to grow our business in new products with profitable margins and the rate of revenue decline for certain existing products; our ability to meet future revenue growth, gross margin and earnings targets; the ability to quickly develop, source, introduce and deliver differentiated and innovative products; our potential dependence on third parties for new product introductions or technologies in order to introduce our own new products; our ability to successfully implement restructuring plans; foreign currency fluctuations; the ready availability and price of energy and key raw materials or critical components including the effects of natural disasters and our ability to pass along raw materials price increases to our customers; continuing uncertainty in global and regional economic conditions; our ability to identify, value, integrate and realize the expected benefits from any acquisition which has occurred or may occur in connection with our strategy; the possibility that our goodwill and intangible assets or any goodwill or intangible assets that we acquire may become impaired; the ability of our security products to withstand cyber-attacks; the loss of a major customer, partner or reseller; changes in European law or practice related to the imposition or collectability of optical levies; the seasonality and volatility of the markets in which we operate; significant changes in discount rates and other assumptions used in the valuation of our pension plans; changes in tax laws, regulations and results of inspections by various tax authorities; our ability to successfully defend our intellectual property rights and the ability or willingness of our suppliers to provide adequate protection against third party intellectual property or product liability claims; the outcome of any pending or future litigation and patent disputes; our ability to access financing to achieve strategic objectives and growth due to changes in the capital and credit markets; limitations in our operations that could arise from compliance with the debt covenants in our credit facilities; our ability to retain key employees; increased compliance with changing laws and regulations potentially affecting our operating results; failure to adequately protect our information systems from cyber-attacks; the effect of the announcement of our review of strategic alternatives; and the volatility of our stock price due to our results or market trends.

Contact:
Imation Corp.
Danny Zheng, 651-704-7038
Email: dzheng@imation.com
Website: www.imation.com

Source: Imation Corp.

Tags: Connected Data, Imation