UK office services provider, Restore, has announced an agreement to acquire TNT Business Solutions, the records management business of TNT UK, for a total consideration of £88 million.
TNT UK’s Business Solutions, business has a £23 million turnover, with five sites in the Midlands and south, including Swadlincote in Derbyshire; and the company has announced that all 250 staff will transfer over to Restore.
Charles Skinner, chief executive of Restore, said: “TNT Business Solutions’ records management business is strong operationally with excellent sites and facilities from which it services many major UK public sector institutions and other customers.
“We have been tracking this opportunity for some time and we are excited by the additional potential it brings to our business. We are also confident of realising synergies from this transaction that will drive increased returns for Restore’s shareholders.”
The company has said that the acquisition will further strengthen the company’s position in UK records management, particularly with public sector customers who represent the majority of TNT Business Solutions’ revenues.
It is expected that there will be operational and property synergies deriving from the acquisition, as well as cross-selling opportunities. Key management is expected to remain with the business, and the acquisition is expected to be earnings enhancing.