AfterDawn: News

Imation has announced a joint venture with the Indian optical media manufacturer. Imation has been the flag ship brand of CMC Magnetics media for many years now, but now this era seems to have reached it’s end. Something pretty good might come out of this as MBI has so far been able to maintain a quite decent level of quality.

OAKDALE, Minn. (February 25, 2003)— Imation Corp. (IMN:NYSE), a worldwide leader in removable data storage media, and Moser Baer India Ltd. (MOSR:BO/MBIZ:IN), a leading Indian transnational manufacturer of optical storage media, today announced a series of agreements including the formation of a global joint venture company, Global Data Media, intended to meet the increasing demand from consumers and businesses for high-capacity removable optical storage media in all geographic regions and market segments. In addition to the joint venture, the companies announced an agreement to allow for the development and sharing of technical knowledge about optical storage formats and manufacturing best practices, and a supply agreement that establishes Moser Baer India as a significant source for Imation's optical media products. The companies will jointly invest approximately $10 million in the establishment of Global Data Media.



Under the terms of the agreement, Imation will hold a 51 percent interest, and Moser Baer India, will hold 49 percent in the new entity. The agreements combine the strengths of both companies—leveraging Moser Baer's state-of-the-art manufacturing capabilities, process technologies and supply chain solutions, with Imation's technology leadership, brand strength, global customer base, and worldwide distribution capabilities. Global Data Media will be a marketing company for optical media products, and will enable the companies to work together to undertake new optical storage media market and sales opportunities.

As the controlling shareholder, Imation will consolidate the results of the joint venture, which is expected to launch in the first half of 2003. Imation expects the benefits of this joint venture to increase revenue and earnings beginning primarily in the second half of fiscal 2003.

Imation

Written by: Lasse Penttinen @ 28 Feb 2003 11:52