Restore has acquired Magnum Secure as part of its growth strategy.
Founded in 1989, Magnum provides records management and secure shredding services, mainly in the North East of England. Magnum has developed a strong presence in the public sector and operates from sites in Goole, East Yorkshire, and Spennymoor, County Durham. Magnum has around 60 staff altogether. Magnum was bought for a cash consideration of £4.6m, on a cash and debt free basis, which was funded from Restore’s existing banking facilities. For the 12 months ending July 31 2014, Magnum’s turnover is expected to be in the region of £2.8m, with EBITDA (earnings before interest, taxation, depreciation and amortisation) in the region of £600,000. In a Stock Exchange statement, Restore said: “The acquisition of Magnum will further strengthen Restore’s position as one of the UK’s leading providers of records management services and brings the benefit of some strong and long-standing customer relationships.”
Charles Skinner, the chief executive of Restore, said yesterday: “The acquisition of Magnum broadens our customer base in the records management market, increases our geographical coverage of the UK and will provide the group with additional cross-selling opportunities.
“We have a strong track record of effectively integrating records management businesses and the board looks forward to the contribution to the group that Magnum will make.”
Restore has two divisions, dealing with document management and relocations. It floated on AIM in November 2004. A team from law firm Schofield Sweeney - Adrian Ballam, Caroline Thompson-Hayes and Adam Hastie - advised the shareholders of Magnum Secure in connection with the deal. Schofield Sweeney has offices in Leeds and Bradford.