Sydney, Australia — September 3, 2014 — Recall Holdings Limited (ASX: REC), a global leader in information management solutions, today announced that it has entered an agreement to sell its German Secure Destruction Services (SDS) business to Rhenus Data Office GmbH. The sale is subject to final regulatory approval from the German competition regulator (Federal Cartel Office), and is anticipated to close later this calendar year.
The sale, which represents a modest gain for Recall, will reduce full year revenue by approximately US$13.5 million, but is expected to be earnings accretive in FY15, assuming the transaction is closed within 1Q FY15. Following the transaction, Recall’s total depreciation and amortisation expense in FY15 is expected to be approximately US$75M, which includes increased depreciation from capital spending and amortisation of acquisitions and customer perm-out fees.
As reported in Recall’s FY14 earnings release, Recall conducted a strategic review of its SDS business and announced its intention to sell the German SDS business. Going forward, Recall will continue to focus on growing its Document Management Solutions (DMS), Data Protection Services (DPS) and digital businesses across the German markets.