4th Nov 2015 09:06
LONDON (Alliance News) - Office services provider Restore PLC on Wednesday said it has struck a deal to acquire the records management arm of Wincanton PLC, the supply chain services provider, for GBP55.7 million, to be part-funded by a share placing.
Restore will pay GBP55.7 million in total to acquire the business, which will be funded in part by a GBP34.0 million share placing with institutional investors. Restore also said it has signed new debt facilities of GBP80 million with Royal Bank of Scotland and Barclays.
Restore will issue a total of 13.1 million shares at 260.00 pence per share. Restore shares were up 7.4% to 296.00p on Wednesday. It said the placing was oversubscribed.
Wincanton Records Management is among the largest records management businesses in the UK and also has a large operation in Ireland. The acquisition will strengthen Restore's existing records management operations and will give it a presence in the Irish market.
"The acquisition of Wincanton Records Management is a significant next step in our stated strategy of continuing to consolidate the UK records management market. We have been tracking this opportunity for some time and we are excited by the potential to combine two businesses of scale to materially expand our platform for growth," said Charles Skinner, Restore's chief executive.
"We have consistently achieved substantial post-acquisition cost savings and we are confident of realising significant synergies from this transaction that will drive increased returns for Restore's shareholders," Skinner added.
Restore added that trading has continued in line with expectations since its September 15 interim results announcement.
Wincanton shares were up 1.2% to 205.25 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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