Restore Buys TNT Business Solutions Using New Facility, Placing Funds (ALLISS)

26th Mar 2018 09:05

LONDON (Alliance News) - Shares in office services provider Restore PLC jumped on Monday as the company announced an GBP88.0 million acquisition, funded by a new debt facility and a share issue.

Restore shares were up 8.1% on Thursday at a price of 510.20 pence each.

Restore is to buy TNT Business Solutions, the records management business of TNT UK Ltd, which is in turn owned by FedEx Corporation, for GBP88.0 million on a cash and debt free basis.

To part fund this, Restore is to place up to 10.1 million new shares at a price of 510.00p each to raise up to GBP51.5 million. This will take place upon completion, expected on the first day of May, with the placing run by Cenkos Securities PLC.

Further, the company has secured a new GBP160.0 million revolving credit facility with a further GBP30.0 million accordion facility. This has been agreed with Barclays PLC, Royal Bank of Scotland Group PLC, Lloyds Banking Group PLC, and Bank of Ireland Group PLC.

Chief Executive Charles Skinner commented: "TNT Business Solutions' records management business is strong operationally with excellent sites and facilities from which it services many major UK public sector institutions and other customers.

"We have been tracking this opportunity for some time and we are excited by the additional potential it brings to our business. We are also confident of realising synergies from this transaction that will drive increased returns for Restore's shareholders."

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