The deal boosts the shredding work of Restore, propelling its activities into second place in the UK shredding market handling more than 90,000 tonnes of paper for recycling per annum.
Prior to the deal, PHS Datashred was thought to be the second largest shredding business while Restore’s shredding division was number three.
Separate business Shredit was the largest and it is thought that Restore’s growth means that it is now closing in on the number one slot.
Facilities management
Restore is a facilities management company with four divisions: storage; scanning; business removals; and shredding.
Commenting on the deal Charles Skinner, chief executive of Restore plc, said: “The acquisition of PHS Data Solutions is a further significant step in our strategy of consolidation and provides a compelling opportunity to combine with a business of scale whose activities are all core to Restore.
It will transform our shredding activities … and provides scope to realise synergies in records management and document scanning.
Charles Skinner, chief executive
Restore plc
“It will transform our shredding activities to make Restore the second largest operator in an attractive market and provides scope to realise synergies in records management and document scanning. PHS Data Solutions and Restore are an excellent strategic fit whose combination we are confident will drive increased returns for Restore’s shareholders.”
For Restore, the PHS deal builds on its purchase in 2015 of the Wincanton shredding operation and it is understood that further acquisitions in the shredding sector are on the cards, although these are expected to be at a much smaller level.
PHS Datashred operated from a national network of 12 branches processing 65,000 tonnes of paper a year, as well as providing the secure destruction of confidential items. The managing director of PHS Datashred, Anthony Pearlgood, is to take charge of the new combined operation within Restore as MD of Restore Shred.
Ambitious
Mr Pearlgood told letsrecycle.com that “Restore has shown they are very ambitious in terms of growth and there is no sign of that beginning to change. They have a scale now that they didn’t have before.”
The work of the shredding business, he said, is complemented well by the other activities of Restore.
“Restore, produces hundreds of thousands of boxes which we recycle of archive documents which are reaching the end of their shelf life. And, when documents have been scanned, often customers want those documents shredded, so there is a big opportunity for cross-selling.”
And, Mr Pearlgood explained that the acquisition gives Restore a greater network of operational sites “whereas previously they had shared sites and some operations with shredders and balers. With PHS about six times the size of the Restore shredding business, this gives Restore considerable strength in the market now.”
Restore will be a larger contributor to the paper recycling market where mid grades, such as Sorted Office Waste (SOW), are in demand. About 80% of the material produced by Restore will go as SOW while it also produces higher and lower quality grades.
Mr Pearlgood remarked: “I am very excited about this. Restore are very good owners and they want to support us as a growing division.”
Digital
And, he was also upbeat the demand for services despite the digital world. “If you looked at it logically, paper arisings should decline. But our paper tonnages have steadily increased over the years, with perhaps a slight dip in the public sector, but there are less people working there. I feel people are becoming more efficient in running digital in parallel with the use of paper.”
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