Document firm Cintas UK acquired in £23.5m deal
DOCUMENT management firm Cintas UK, which has operations in Birmingham and Redditch, has been bought by AIM-listed company Restore in a £23.5m deal.
Cintas Document Management (UK) (CDMUK), is one of the UK’s ten largest providers of records management services and currently operates from 12 sites across Britain. It is the UK records management and scanning division of US-based Cintas Corporation.
For the 12 months ended May 31 2014, CDMUK recorded EBITA of £0.2m and an operating loss of £0.4m. Total revenues were £19.7m.
The net assets of CDMUK as at May 31 were £19.2m.
The Cintas Corporation has its headquarters in Cincinnati, Ohio, and has roots going back to the late 1920s. Cintas operates more than 430 facilities in North America, Europe, Latin America and Asia and employs around 30,000 people.
London-headquartered UK office services provider Restore, has entered into a sale and purchase agreement to acquire CDMUK, for a total consideration of £23.5m.
Restore said the acquisition of CDMUK is consistent with its strategy of consolidating the UK records management sector and provides significant synergistic opportunities to improve CDMUK’s operational and financial performance.
Charles Skinner, chief executive of Restore, said: “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.
“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.”
