Acquisition of M&L Document Destruction Limited

RNS Number : 8236J

Restore PLC

13 August 2012

 



13 August 2012

Restore plc

Acquisition of M&L Document Destruction Limited

Restore plc ("Restore" or "the Company") is pleased to announce the acquisition of M&L Document Destruction Limited ("M&L"), which was completed on 10 August 2012.

M&L is a provider of secure shredding and recycling services operating from premises in Stockton-on-Tees. In the year to 31 March 2011, M&L recorded revenues of £588,000 and an operating profit of £236,000 and at 31 May 2011 had tangible assets of £148,000. M&L was acquired for a cash consideration of £300,000.

This acquisition represents the first step towards expanding the secure shredding activities of Restore Shred in the North of England. M&L currently serves customers across the North East and has significant spare capacity for expansion.

As part of the transaction, Mark Bradley, a founder of M&L, has joined Restore Shred as Managing Director. An incentive scheme has been put in place for the former management of M&L related to the future performance of the business.

Prior to the transaction, Restore plc acquired the remaining 50% of the shares in Restore Shred it did not previously own on the same valuation basis as the initial investment.  

Commenting on the acquisition, Charles Skinner, Chief Executive of Restore, said:

"The purchase of M&L strengthens our presence and capability in secure shredding and brings the benefit of some strong customer relationships. There is considerable demand for a shredding service in the North East from our existing customers and we expect to accelerate the growth of our shredding activities as a result".

For further information please contact:

Restore plc

Charles Skinner, Chief Executive Tel: [phone]

Adam Councell, Group Finance Director Tel: [phone]

Cenkos Securities

Nicholas Wells / Adrian Hargrave Tel: [phone]

FTI Consulting

Nick Hasell Tel: [phone]

 

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