Restore Share News (RST)

(Sharecast News) - Document management, relocation and technology recycling company Restore has acquired the Runcorn-based tech recycling and asset disposition company Computer Disposals (CDL), it announced on Tuesday.
The AIM-traded firm said that following the acquisition, Restore Technology became the number one IT recycling business in the "heavily fragmented" UK market.

It said the addition of CDL, together with its November acquisition of E-Recycling, further improved its network coverage, scale and potential for synergy.

The board said the acquisition represented another milestone in Restore's strategy for growth, outlined on its capital markets day in November.

Its strategy was to grow earnings through organic expansion, strategic acquisition and margin improvement through synergies and efficiency gains.

CDL operates from a "state-of-the-art" facility in Runcorn, Cheshire, which would provide further capacity for Restore's operations in the north West of England, and complemented Restore Technology's existing sites in Birmingham, Bedford, Bristol, Portsmouth and Dunsfold.

Restore said CDL had an "extensive" UK-wide customer base, and operated through both direct relationships and the IT Reseller channel, which represented a "key strategic growth area" for the business.

Key management and more than 80 staff would remain in the business, which would be integrated into Restore Technology during 2021.

It said CDL is a "well-invested, highly-profitable and cash-generative" business, which was expected to generate revenues of about £8m and EBIT of more than £2m per annum in the medium term.

"CDL is one of the most respected operators in the market and after several years of discussions we are delighted that they have decided to become part of our fast-growing company," said chief executive officer Charles Bligh.

"Restore Technology is now comfortably the UK market leader in the recycling of IT assets and with the addition of a major new site in the north west, we have increased our scale and created greater opportunity to grow, both organically and with additional acquisitions in the future."

At 1445 GMT, shares in Restore were up 1.27% at 379.75p.