Document management firm acquired in £23.5m deal
DOCUMENT management firm Cintas UK has been snapped up by AIM-listed Restore in a £23.5m deal.
Cintas Document Management (UK) (CDMUK), headquartered in Leeds, 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 twelve months ended May 31 2014, CDMUK recorded EBITA of £0.2m and an operating loss of £0.4m after amortisation of goodwill of £0.6m. Total revenues were £19.7m, of which £12.9m was attributable to records management, £6.4m to scanning services and £0.4m to non-transferring revenues. The net assets of CDMUK as at May 31 2014 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 payable by the company 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. The board looks forward to the contribution to the group that CDMUK will make and to continued progress in the execution of our strategy.”
