Restore to snap up CDMUK for Â£23.5m
Office services provider Restore is set to snap up one of the UK's largest providers of record management services in a deal worth almost £25m.
Surrey-based Restore, which is set to raise approximately £14.9m through the issue of more than seven million new shares, has agreed to acquire Cintas Document Management (UK).
CDMUK, which currently operates from 12 sites across mainland Britain, is the UK records management and scanning division of US-based Cintas Corporation. The total consideration for the deal is £23.5m.
The acquisition will be financed from funds raised by the placing and a new debt facility of £15m.
Restore chief executive Charles Skinner 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."
For the 12 months ended 31 May 2014, CDMUK recorded total revenues of £19.7m. The company is headquartered in Leeds and has bases in Birmingham, London, Middlesex, Manchester, Redditch and Gloucestershire.