6th Oct 2014 06:37
LONDON (Alliance News) - Restore PLC Monday said it has struck a deal to buy Cintas Corp's UK records management and scanning division for GBP23.5 million, and will raise about GBP14.89 million in a placing to help fund the deal.
Restore will issue nearly 7.1 million shares at 210 pence a share. It also has a new GBP15 million debt facility to fund the remainder of the purchase.
In a statement, it said it will buy Cintas Document Management (UK) Ltd, a deal it expects to boost earnings in the first full year of ownership and extend its position as the UK's second-largest provider of records management services.
The UK unit of US-based Cintas Corp made earnings before interest, tax and amortisation of GBP0.2 million in the 12 months to end-May, and an operating loss of GBP0.4 million after amortisation of GBP0.6 million of goodwill. Revenue was GBP19.7 million, with GBP12.9 million coming from records management and GBP6.4 million from scanning services.
"This acquisition is a major milestone in Restore's development and represents the most significant consolidation within the UK records management sector since we embarked on our strategy of acquisitive growth four years ago," Restore Chief Executive Charles Skinner said in a statement.
"It provides an excellent opportunity for Restore to deploy its operational expertise and expand its presence in records management and scanning, and we are confident that the significant synergies between Restore and CDMUK will ensure an attractive return on invested capital for our shareholders," he added.
By Steve McGrath; [email protected]; @stevemcgrath1
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