- Title:
Acquisition of Computer Disposals Ltd - Time:
07:00:06 - Date:
12 Jan 2021 - Category:
Acquisitions and alliances - ID:
3059L
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:
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
Acquisition of Computer Disposals Ltd 07:00:0612 Jan 2021Acquisitions and alliances3059L