Strategic acquisition of The Document Warehouse
27 October 2021
Restore plc
("Restore" or the "Group" or "Company")
Strategic acquisition of The Document Warehouse
Continued expansion of Records Management
Restore plc (AIM: RST), the UK's leading provider of integrated information and data management services, secure technology recycling, and commercial relocation solutions, is pleased to announce that is has acquired 100% of the share capital of The Document Warehouse in the UK ("TDW"), for a cash consideration of £6.5m.
TDW is an established records management business located in Sittingbourne, Kent, with c.124k boxes under management and generating annual revenue of c.£550k. Importantly, the business has a modern freehold warehouse and logistics centre (which is a majority of the consideration) that will provide an additional, strategically well-located site with capacity to service the key London and the South of England markets for Restore's growing box estate and to further consolidate existing sites.
To support the long-term trend of annual organic growth of 1-2% pa in boxes under management, Restore has a strategy to expand capacity, whilst also reducing cost through increasing storage density and consolidation of existing premises. Whilst most of the Group's storage footprint is leased, this opportunity to acquire a freehold site with available capacity and future development potential, represents an excellent strategic opportunity.
Key features of the acquisition are:
· Current boxes under management c.124k, servicing customers across London and the South of England
· Capacity to hold up to a further c.350k additional boxes in the existing building
· Potential to expand capacity to c.800k-1million boxes subject to planning permission which will create total additional capacity of c.680k boxes
The additional c.680k capacity will provide opportunity for further property consolidation in the South of England, as well as capacity for future acquisitions and further organic growth from existing customers around London. This follows completion of a significant extension at Restore's sector leading Rainham facility in 2020.
This is the third Records Management investment in the last nine months, which together have increased Restore's Records Management capacity by c.7% (c.1.8m boxes). Additional strategic capacity investments have included:
·
Entry into a new lease for a c.960k box facility in Heywood, Lancashire (August 2021) with an option to expand occupancy at the site by a further 1.1m boxes
·
Through the EDM acquisition (May 2021), 3 leasehold sites acquired with spare box capacity of c.230k
· This acquisition of TDW will provide a further c.680k capacity with planning approvals
This is the sixth acquisition by Restore this year and brings the total invested year to date to £83.9m.
Restore will hold a Capital Markets Day on 11 November 2021 to further outline the growth strategy and ESG strategy for the Group. Please contact Buchanan via restore@buchanan.uk.com if you wish to register your interest.
Charles Bligh, CEO, commented:
"I am delighted with the acquisition of TDW, which brings new customers and associated revenue to the Group, alongside a strategically valuable freehold site. The potential to create c. 680k of new box capacity near London will enable Restore to support both organic and inorganic growth in the region as well as generating further cost saving opportunities as part of our footprint optimisation strategy.
"We have made excellent progress on our strategic priority to grow with acquisitions, with close to £84m invested across six transactions so far this year and we have a number of well advanced opportunities across all business units to close in 2021 and 2022."
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
Vicky Hayns
Stephanie Whitmore
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