Restore buys PHS Document Shredding

The British office services provider Restore PLC has agreed to acquire PHS Data Solutions for €83.1 million (US$110 million). Restore says the acquisition will be financed from funds raised through a placing with certain institutional investors and from its existing debt facilities.

The deal for PHS Data Solutions follows Restore’s acquisition of the records management business of Wincanton plc late last year. Restore says the two recent acquisitions will help consolidate its position in the UK document management sector.

PHS Data Solutions is the second largest provider of document shredding services in the U.K. The company also has a significant records management business and a presence in document scanning.

Restore notes that the acquisition of PHS will strengthen its market position in document shredding by combining what its board believes to be the second and third largest document shredding businesses in the UK and further extend its presence as the second largest records management operator in the UK.

PHS Datashred has a network of 12 branches throughout the U.K. and processes about 65,000 tonnes of paper a year, as well as providing the secure destruction of confidential items. Further, PHS Records Management stores about 2.3 million boxes across 8 locations and has a capacity utilization of about 82%. PHS Capital Capture provides on and off site document scanning services with branches in London and Birmingham. Collectively, PHS Data Solutions currently has 580 employees, who will transfer to Restore upon completion of the acquisition.

In acquiring PHS, Charles Skinner, Restore’s chief executives, says, “The acquisition of PHS Data Solutions is a further significant step in our strategy of consolidation and provides a compelling opportunity to combine with a business of scale whose activities are all core to Restore. It will transform our shredding activities to make Restore the second largest operator in an attractive market and provides scope to realize synergies in records management and document scanning. PHS Data Solutions and Restore are an excellent strategic fit whose combination we are confident will drive increased returns for Restore's shareholders.”