Barclays: Acquisition of Magnum Secure consolidates Restore's position

23 April 2014

Terry Myatt, relationship director of the Business Services Industry team at Barclays, has responded to Restore's recent acquisition of Magnum Secure, which was completed on 17 April 2014

Restore has announced the acquisition of Magnum Secure, which was completed on 17 April 2014.

Terry Myatt, relationship director, Business Services Industry team, Barclays, said: “We recently completed a £30m financing agreement in order to support Restore’s continued organic and acquisition-led growth and the latest acquisition of Magnum will consolidate the company’s position as the second largest player in this market place. We're committed to supporting Restore and its ambitious management team as they look to grow their market share within the dynamic support services sector.”

Founded in 1989, Magnum provides records management and secure shredding services, predominantly in the North East of England. Magnum has developed a particularly strong presence with large public sector organisations and currently operates from sites in Goole, East Yorkshire, and Spennymoor, County Durham.

Magnum was purchased for a cash consideration of £4.6m, on a cash and debt free basis, funded from Restore's existing banking facilities. For the 12 months ending 31 July 2014, Magnum's turnover is expected to be in the region of £2.8m, with EBITDA in the region of £0.6m.

The acquisition of Magnum will further strengthen Restore's position as one of the UK's leading providers of records management services and brings the benefit of some strong and long-standing customer relationships.

Charles Skinner, chief executive of Restore, said: "The acquisition of Magnum broadens our customer base in records management, increases our geographical coverage of the UK and will provide the Group with additional cross-selling opportunities. We have a strong track record of effectively integrating records management businesses and the Board looks forward to the contribution to the Group that Magnum will make."