BOSTON--(EON: Enhanced Online News)--Iron Mountain Incorporated (NYSE: IRM), the storage and information management services company, has received requisite approval from the U.S. Department of Justice (DOJ) and the Canadian Competition Bureau (CCB) to sell certain legacy Recall assets in Seattle and Atlanta and to sell certain legacy Recall and legacy Iron Mountain assets in Canada. All of the assets will be sold to Summit Park, a Charlotte-based private equity firm, for a total consideration of $50 million, subject to adjustments. The records management provider comprised of the assets will be named Arkive. The transaction is expected to close by the end of the year.
As disclosed on March 31, 2016, the DOJ and CCB approvals of the Recall acquisition were contingent upon Iron Mountain’s agreement to divest certain legacy Recall assets in the U.S. and legacy Recall and Iron Mountain assets in Canada.
The DOJ’s approval was conditioned upon Iron Mountain’s agreement to divest, to a buyer or buyers subject to the DOJ’s approval, Recall’s records and information management facility in Seattle and certain of Recall’s records and information management facilities in Atlanta. In addition, the DOJ required Iron Mountain to divest of Recall’s records and information management facilities in 13 U.S. cities; this transaction closed on May 4 and the assets were sold to Access CIG, LLC, a privately held provider of information management services throughout the United States, for total consideration of $80 million, subject to adjustments.
The CCB’s approval was based upon Iron Mountain’s agreement to divest Recall’s records and information management facilities in Edmonton and Montreal (Laval), and certain of Recall’s records and information management facilities in Calgary and Toronto. In addition, Iron Mountain agreed to divest one of its records and information management facilities in Vancouver (Burnaby) and one of its records and information management facilities in Ottawa.
About Iron Mountain
Iron Mountain Incorporated (NYSE: IRM) is the global leader for storage and information management services. Trusted by more than 220,000 organizations around the world, Iron Mountain boasts a real estate network of more than 80 million square feet across more than 1,350 facilities in 45 countries dedicated to protecting and preserving what matters most for its customers. Iron Mountain’s solutions portfolio includes records management, data management, document management, data centers, art storage and logistics, and secure shredding help organizations to lower storage costs, comply with regulations, recover from disaster, and better use their information. Founded in 1951, Iron Mountain stores and protects billions of information assets, including critical business documents, electronic information, medical data and cultural and historical artifacts. Visit www.ironmountain.com for more information.
Forward Looking Statements
Certain statements contained in this communication may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws and be subject to the safe-harbor created by such Act. Forward-looking statements include, but are not limited to, the anticipated closing of the sale of the US. and Canadian assets referenced herein. These forward-looking statements are subject to various known and unknown risks, uncertainties and other factors. When Iron Mountain uses words such as "believes," "expects," "anticipates," "estimates" or similar expressions, it is making forward-looking statements. You should not rely upon forward-looking statements except as statements of Iron Mountain’s present intentions and of Iron Mountain’s present expectations, which may or may not occur. Although Iron Mountain believes that its forward-looking statements are based on reasonable assumptions, Iron Mountain’s expected results may not be achieved, and actual results may differ materially from its expectations. Important factors that could cause actual results to differ from Iron Mountain’s expectations include, among others: Iron Mountain’s ability to close the proposed sale in accordance with its terms. Additional risks and factors that may affect results are set forth in Iron Mountain’s filings with the Securities and Exchange Commission, including Mountain’s filings with the Securities and Exchange Commission, including under the caption “Risk Factors” in Iron Mountain’s periodic reports,. Any forward-looking statements contained herein are based on assumptions that Iron Mountain believes to be reasonable as of the date hereof and Iron Mountain undertakes no obligation, except as required by law, to update these statements as a result of new information or future events.