For more information visit: www.imation.com
Unedited press release follows:
Imation Articulates Strategy for Use of Excess Cash
OAKDALE, Minn. — Imation Corp. (NYSE:IMN) (“Imation” or the “Company”) today announced that following a review by the Board of Directors (the “Board”) of the Company, it will actively explore new alternative uses for its excess capital. The decision follows a review by a Strategic Alternatives Committee that was formed in August 2015 to work with management and make recommendations to the Board regarding the Company’s use of its excess capital. The Strategic Alternatives Committee has also been tasked with (i) examining opportunities to deploy the Company’s excess cash and (ii) developing initiatives for strategic value creation. The Strategic Alternatives Committee has concluded that the Company’s initiatives should not be limited solely to the Company’s areas of historical focus and that the Company should consider opportunities to diversify its business activities. The scope of the acquisition opportunities to be considered by Imation may be outside of industries that comprised the Company’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.
Newly appointed Interim CEO, Bob Fernander, will lead the evaluation and deployment of capital in conjunction with the Strategic Alternatives Committee. “Imation will have a flexible mandate with the sole goal of applying the investment and operating expertise of our executive team and board to generate profits, and the Company’s executive team and Strategic Alternatives Committee will be tasked with sourcing these opportunities,” said Mr. Fernander. “Our engaged Board and management team will allow us the capacity to execute our restructuring, build the Company’s storage assets and deploy excess capital, all three contributing to growing shareholder equity.”
Imation’s (NYSE: IMN) principal line of business is global data storage and information security. This business’ products and solutions help organizations and individuals store, manage and protect digital content. Imation’s storage and security solutions include Nexsan high-density, archive and solid-state optimized unified hybrid storage solutions; IronKey™ mobile security solutions that address the needs of professionals for secure data transport and mobile workspaces; Connected Data file sync and share appliances; and consumer storage solutions, audio products and accessories sold under the Imation and Memorex brands. Imation reaches customers in more than 100 countries through a powerful global distribution network. In addition, following the strategic review announced in October 2015, the Company expects to seek and explore new opportunities that will allow it to pursue a diverse range of business opportunities. For more information, visit www.imation.com.