Norcross, GA: December 3, 2014 Recall Holdings Limited (ASX: REC), a global leader in document storage, digital document management and data protection, today announced its sixth acquisition since the beginning of this fiscal year (beginning July 1, 2014) with the purchase of Business Records Management LLC (BRM) in the U.S. for $77 million.
“This has been a strong start to the year for Recall, as evidenced by our sixth acquisition in FY15,” said Doug Pertz, President and CEO of Recall. “This transaction will deliver a positive outcome to customers and shareholders. We continue to execute on our strategy of sustainable profitable growth and now expect full year FY15 revenue growth to approach double digits, as measured in constant currency. Revenue growth will be stronger in the second half of FY15 due to the impact of acquisitions and onboarding of large accounts in implementation. We also expect full year EBITDA growth to be at least in line with revenue growth in full year FY15,” said Pertz.
BRM is a leading records management company with secure storage facilities servicing more than 4,700 clients across Pennsylvania, Ohio, West Virginia, New York and Maryland. The acquisition enhances Recall’s presence in key U.S. regions and provides BRM’s clients the ability to securely manage their physical and digital assets through a single partner. Integration is expected to commence immediately and will add 3.4 million carton equivalents to total holdings and approximately $21 million of annualised revenue. The acquisition will be EPS accretive in FY15 and on a post synergy basis, the acquisition price represents an EBITDA multiple of less than 7.0x.
“BRM meets our high standards for customer service, technology and professionalism and we are proud to add the BRM team and customers to Recall’s portfolio. With this acquisition Recall solidifies its position as a leader in the Northeast, Midwest and Atlantic regions,” said Mark Wesley, President Recall Americas.