29 April 2013
Restore plc
Acquisition of IT Efficient Limited
Restore plc ("Restore" or "the Company") is pleased to announce the acquisition of IT Efficient Limited ("IT Efficient"), the national IT asset disposal and recycling business, which was completed on 26 April 2013.
Founded in 1999, IT Efficient provides secure data destruction and hardware disposal services for computer equipment, predominantly to large blue-chip customers across the UK, and currently operates from a recycling facility in Bedfordshire.
IT Efficient processes over 90,000 items of IT equipment a year, ranging from laptops and computer servers to mobile phones. The business provides on and off-site destruction services alongside recycling and refurbishment of electronic items, with a particular focus on office equipment. It has a strong presence in the financial services sector, with customers that include five of the world's leading investment banks.
The acquisition of IT Efficient will broaden the capabilities of the Company to offer additional office services alongside its existing document management and office relocation activities. IT Efficient has a similar channel to market and a complementary customer base to Restore and benefits from regulation related to the safe and secure disposal of IT equipment, including the EU Waste Electrical and Electronic Equipment Directive.
The initial consideration for IT Efficient is £1.8m on a cash free debt free basis. The transaction also includes a cash earn-out capped at £370,000 and dependent on the performance of the business in the 24 months following completion. The vendors will be staying with the business.
For the 12 months ended 28 February 2013, IT Efficient's audited accounts recorded an operating profit of £505,000 on a turnover of £2.1m and net assets of £205,000.
Charles Skinner, Chief Executive of Restore plc, said:
"The acquisition of IT Efficient is an important step in our strategy of broadening the scope of services we offer our customers through the addition of new activities which complement our existing businesses. Our customers clearly identified their need for a secure, responsible and sustainable solution for disposing of their redundant IT assets and, through this transaction, we are pleased to be able to meet that requirement. Following our move into office relocation and secure document shredding, the addition of IT asset disposal provides us with another excellent platform for growth and the Board looks forward to the contribution to the Group that IT Efficient will make."
For further information please contact:
Restore plc |
Charles Skinner, Chief Executive |
07966 234 075 |
Adam Councell, Group Finance Director |
07860 402 434 |
Cenkos Securities |
Elizabeth Bowman / Adrian Hargrave |
020 7397 8900 |
FTI Consulting |
Nick Hasell |
020 7269 7291 |
