20th Jul 2016 07:18
LONDON (Alliance News) - Office services provider Restore PLC on Wednesday said it has agreed a GBP83.1 million deal to acquire PHS Data Solutions and will back that agreement with a placing, while trading in the first half met its expectations.
Restore, which provides records management and office relocation services, said it will acquire PHS Data Solutions from Personnel Hygiene Services Ltd.
The deal will be backed by a GBP35.2 million share placing, through which Restore has issued 12.1 million shares priced at 290.00 pence apiece. Restore shares were up 5.4% to 303.50p just after the open on Wednesday.
Around GBP27.7 million of the funds raised will be used to back the deal, with the rest to be backed by existing debt facilities.
PHS is the second-largest provider of document shredding services in the UK and operates records management and document scanning businesses. Restore said the deal will boost its position in the document shredding segment in the UK and will increase its presence further in records management.
"The acquisition of PHS Data Solutions is a further significant step in our strategy of consolidation and provides a compelling opportunity to combine with a business of scale whose activities are all core to Restore," said Restore Chief Executive Charles Skinner.
The acquisition was announced as Restore said trading in the first half of 2016 met its expectations.
The records management business has traded well and the integration of the records management arm it bought from distribution firm Wincanton PLC last year is proceeding to plan. Net box growth in the unit was slightly weaker year-on-year, in line with expectations after an anticipated major customer exit from the Wincanton operation.
Restore Scan, its document scanning arm, traded well in the half and Restore Shred was broadly in line, though Restore said its contribution to the group lacked sufficient scale to make a significant contribution, something it will remedy with the acquisition announced.
Relocation division trading was in line, but the group said its ITP printer cartridge recycling unit experienced weaker trading throughout the half due to softening global demand.
Restore will publish interim results on September 12.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Restore