Restore (RST) has expanded its records management business in a £2.6m deal to buy Manchester-based Archive Solutions. Restore intends to fund the deal through a placing of 3.23m shares at 93p apiece, raising £3m before expenses.
IC TIP:
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94p
For the 12 months to 30 June 2012, Archive Solutions made cash profits of £478,000 on sales of £1.26m; the business had net assets of £380,000 including £100,000 in cash. As part of the transaction, Claire Dunn, managing director of Archive, will join Restore with an 'earn-out' deal.
Geraldton Services, controlled by Lord Ashcroft, which owns 51 per cent of Restore's issued share capital, won't participate in the placing, so its shareholding will drop to 48 per cent.
