Acquisition of ITP Group Holdings Limited

RNS Number : 2000S

Restore PLC

06 July 2015

 

6 July 2015

Restore plc

Acquisition of ITP Group Holdings Limited

Restore plc ("Restore" or "the Group") is pleased to announce the acquisition of ITP Group Holdings Limited ("ITP"), the UK's leading collector of empty printing cartridges.

Founded in 1992, ITP collects empty printer cartridges and sells them on to cartridge remanufacturers and original equipment manufacturers.  Based in Reading, it also has facilities in Thetford, Norfolk and Frankfurt in Germany.

ITP trades under the names ITP, Takeback and Office Green.  It collects cartridges from thousands of premises across the UK in all business sectors, including large corporates, SMEs, NHS Trusts and schools.  It also makes bulk purchases of cartridges from waste operators and other recycling businesses.  ITP handles several million items a year.

The acquisition of ITP will broaden the capabilities of the Group to offer additional office services alongside its existing IT recycling, document management and office relocation activities.  It enhances the Group's recycling capabilities where the Group already has a significant presence in paper, furniture and IT.  ITP has a complementary customer base to Restore and its volumes can be expected to increase as ITP's services are offered to Restore's customers.

The total consideration for ITP is up to £4 million on a cash-free debt-free basis.  The initial consideration is £3.2 million, funded from Restore's existing bank facilities, with a further £0.4 million payable after a six month handover period and an additional payment of up to £0.4 million based on performance during that period.

For the 12 months to 31 May 2015, ITP's management accounts recorded an operating profit of £1.1 million on a turnover of £4.5 million.  Net assets per the management accounts are £4.9 million including £3.7m of surplus cash which has been paid by Restore as additional consideration.

Charles Skinner, Chief Executive of Restore plc, said:

"The acquisition of ITP further broadens the scope of services we offer our customers and enhances our presence in the recycling of office products.  We believe this transaction provides us with another excellent platform for growth and the Board looks forward to the contribution to the Group that ITP 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
Nick Wells	020 7397 8900
FTI Consulting
Nick Hasell	020 3727 1234

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