Acquisition of Computer Disposals Ltd

RNS Number : 3059L

Restore PLC

12 January 2021

 

12 January 2021

Restore plc

("Restore" or the "Group" or "Company")

Restore Technology acquisition of Computer Disposals Ltd

Restore Technology becomes the number one IT recycling business in the UK

Restore plc (AIM: RST), the UK market leading document management, commercial relocation and IT recycling business, is pleased to announce that it acquired 100% of the share capital of Computer Disposals Ltd ("CDL"), a leading IT recycling and asset disposition (ITAD) business based in Runcorn, UK, on 8 January 2021.

Following this acquisition, Restore Technology becomes the number one IT recycling business in the UK market which is large, growing and heavily fragmented. The addition of CDL, together with the Group's acquisition of E-Recycling Limited, previously announced on 2 November  2020, further improves Restore's network coverage, scale and potential for synergy.

This acquisition represents another milestone in Restore's strategy for growth outlined in the Capital Markets Day in November 2020. Restore's strategy is to grow earnings through organic expansion, strategic acquisition and margin improvement through synergies and efficiency gains.

CDL operates from a state-of-the-art facility in Runcorn, Cheshire. This additional facility will provide further capacity for Restore's operations in the North West of England and complements Restore Technology's existing sites in Birmingham, Bedford, Bristol, Portsmouth and Dunsfold.

CDL has an extensive UK wide customer base and operates through both direct relationships and the IT Reseller channel, which represents a key strategic growth area for the business. Key management and over 80 staff will remain in the business which will be integrated into Restore Technology during 2021. CDL is a well invested, highly profitable and cash generative business and is expected to generate revenues of approximately £8m and EBIT of more than £2m per annum in the medium term.

Charles Bligh, CEO, commented on the acquisition:

"CDL is one of the most respected operators in the market and after several years of discussions we are delighted that they have decided to become part of our fast-growing company. Restore Technology is now comfortably the UK market leader in the recycling of IT assets and with the addition of a major new site in the North West, we have increased our scale and created greater opportunity to grow, both organically and with additional acquisitions in the future."

For further information, please visit:

www.restore.co.uk/Technology  

www.computerdisposals.com

Restore plc    www.restoreplc.com  

Charles Bligh, CEO   020 7409 2420

Neil Ritchie, CFO

Peel Hunt LLP  www.peelhunt.com

Mike Bell  020 7418 8900

Ed Allsopp

Buchanan Communications                                              www.buchanan.uk.com  

Charles Ryland  020 7466 5000

Stephanie Watson

Tilly Abraham

 

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