Imation Articulates Strategy for Use of Cash

Imation Corp. announced that following a review by the board of directors 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 committee has also been tasked with

• examining opportunities to deploy the company’s excess cash and
• developing initiatives for strategic value creation.

The 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, 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 teamand board to generate profits, and the company’s executive team and Strategic Alternatives Committee will be tasked with sourcing these opportunities,” said 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.”