Archive Solutions snapped up by Restore

Archive Solutions snapped up by Restore
NORTH West document storage specialist Archive Solutions has been sold to AIM-listed Restore for an initial £2.6m.

NORTH West document storage specialist Archive Solutions has been sold to AIM-listed Restore for an initial £2.6m.

Middleton-based Archive Solutions was founded in 2004 and is led by managing director Claire Dunn who is joining Restore as part of an earn-out arrangement.

Mrs Dunn and her other investors will pocket £2.34m immediately and collect £260,000 in December this year. An unspecified further sum will be paid, dependent on the performance of Archive Solutions over the next three years and will be paid in 2015.

In the year to the end of June 2012, Archive Solutions recorded an adjusted EBITDA of £478,000 (2011: £410,000) on a turnover of £1.26m (2011: £1.14m).

At completion, the business had net assets of £380,000 including cash of £100,000. Its clinets include business coaching company Winning Pitch, Begbies Traynor and insurer CBG.

London-based Restore said it would place 3.2 million new ordinary shares at 93p each, raising £3m to fund this and other bolt-on deals.

Restore said the deal would strengthen its position as one of the UK’s leading providers of records management whilst expanding its presence in Manchester.

It added: “Restore currently operates in the Manchester area in both records management and commercial relocations, and plans to integrate its records management operations rapidly in the months ahead.”

Charles Skinner, chief executive of Restore added: “Restore has been looking to gain a broader presence in the Manchester area for some time and the acquisition of Archive Solutions provides a suitable platform to accelerate our growth.

“The board looks forward to the contribution to the Group that Archive Solutions will make.”

David Bowcock, corporate partner at North West law firm Brabners Chaffe Street advised long-term client Restore on the acquisition and placing. The firm’s team also included corporate associates, Mark Morrell and William Ngan, and property associate, Matthew O’Brien.

Rebecca Grisewood and Rick Almond of Gateley in Manchester acted for the sellers of Drawlin Limited, the owner of Archive Solutions.

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