BOSTON--(EON: Enhanced Online News)--Iron Mountain® Incorporated (NYSE: IRM) has acquired Cornerstone Records Management, growing its core information storage business by adding complementary small and mid-sized organizations to its customer base.
“Acquiring Cornerstone is further example of how we use targeted acquisitions to advance our business strategy”
The storage and information management firm purchased Cornerstone for approximately $191 million in cash, subject to certain purchase price adjustments.
Cornerstone Records Management provides predominately records storage, along with document shredding and data protection services, to small and mid-sized organizations. The company operates throughout the Mid-Atlantic and Northeast regions of the country as well as in Southern California, Denver and Houston. Altogether, Cornerstone stores and manages nearly 11 million cubic feet of hardcopy documents across 36 leased facilities.
“Acquiring Cornerstone is further example of how we use targeted acquisitions to advance our business strategy,” said William Meaney, president and chief executive officer of Iron Mountain. “In our mature markets like the U.S., selective M&A is one way we seek to expand our market presence, grow rental revenues from our storage business and sustain the durability of our strong cash flows. Cornerstone is a high-quality business that helps us meet these goals by adding a complementary group of small and mid-sized organizations to our customer base.”
Iron Mountain expects limited impact on 2013 results and annualized revenue of $50 to $55 million in 2014 with approximately $20 million in Adjusted OIBDA. Additional Adjusted OIBDA benefits are expected to be realized over time as real estate synergies are achieved. The company will provide additional details on the contribution from recent acquisitions and capital requirements when it provides preliminary 2014 guidance with the reporting of its third quarter results on Oct. 31.
“We welcome the customers of Cornerstone and look forward to serving them,” said Harold Ebbighausen, president of Iron Mountain, North America. “For us, that means not only securing their records, but providing them insights and best practices on how they can manage information with less cost and risk. That’s when we become true business partners.”
Acquisitions are a key component of Iron Mountain’s business strategy to sustain the durability of high-return, mature markets and to establish market leadership in high-growth emerging markets. To that end, the company has completed year-to-date transactions totaling nearly $220 million in established markets of the U.S. and France and $100 million in emerging markets of Brazil, Colombia and Peru, where the company recently completed the acquisition of File Service. File Service stores and manages hardcopy documents and tape cartridges on behalf of nearly 500 customers. The deal was valued at $16 million.
About Iron Mountain Incorporated
Iron Mountain Incorporated (NYSE: IRM) is a leading provider of storage and information management services. The company’s real estate network of over 64 million square feet across more than 1,000 facilities in 36 countries allows it to serve customers around the world. And its solutions for records management, data backup and recovery, document management 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 business documents, backup tapes, electronic files and medical data. Visit www.ironmountain.com for more information.
Safe Harbor for Forward-Looking Statements:
Statements in this press release regarding the proposed acquisition by Iron Mountain Incorporated of Cornerstone Records Management, the expected timetable for completing the transaction, future financial and operating results and capital requirements, benefits and synergies of the transaction, future opportunities for the combined company and any other statements about Iron Mountain managements’ future expectations, beliefs, goals, plans or prospects constitute forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements preceded by words such as “believes,” “expects,” “anticipates,” “intends,” “will,” “may,” “should,” or similar expressions) should also be considered to be forward looking statements. These forward-looking statements are subject to risks and uncertainties that may cause actual future experience and results to differ materially from those discussed in these forward-looking statements. Important factors that might cause such a difference include, but are not limited to, the possibility that the transaction will not close or that the closing will be delayed; the challenges and costs of integrating the Cornerstone operations; and other events and factors disclosed previously and from time to time in Iron Mountain Incorporated’s filings with the Securities and Exchange Commission, including Iron Mountain Incorporated’s most recently filed Annual Report on Form 10-K filed on March 1, 2013. Except as required by law, Iron Mountain Incorporated undertakes no obligation to release publicly the result of any revision to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.