Redishred expands footprint in New York, New Jersey

After expanding further into the U.S. Southeast market earlier this year, Ontario-based document destruction and recycling company Redishred Capital Corp. has made a move in the Northeast.

The company completed the acquisition of Confidential Shredding, based in Woodcliff Lake, New Jersey, earlier this week. Confidential is a full-service on-site shredding company that services all of New York, New Jersey and Connecticut. It offers paper and hard drive shredding, product destruction and paper recycling services.

The transaction is valued between $3.2 million and $3.5 million.

“The acquisition of Confidential allows us to further densify our footprint in the New Jersey and New York area, including the five boroughs of New York City,” Redishred Senior Vice President of Acquisitions Kasia Pawluk says. “We expect to achieve routing, administrative and sales synergies as Confidential’s routes significantly overlap with those of our existing locations.”

Redishred highlights Confidential’s pro forma earnings before interest, taxes, depreciation and amortization margin, estimated to be in the 40 percent to 45 percent range, and views the acquisition as accretive to its cash flows and earnings per share. Confidential earned approximately $1.9 million in revenue in 2023.

The asset acquisition includes on-site paper and hard drive shredding trucks, containers, client relationships and other assets used in the shredding and paper recycling business.

“We want to thank Joe Villani and Joe David for their dedication to the business over the past decade and for their strong commitment to their customers,” Pawluk says. “We look forward to continuing to provide the same level of excellent service to customers and we wish them all the best in their future endeavors.”