Deal grows company’s storage business in U.S. and expands its roster
of mid-sized customers
BOSTON--(BUSINESS WIRE)--Oct. 18, 2013-- 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.
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.
Source: Iron Mountain Incorporated
Iron Mountain
Media Contact:
Dan
O’Neill, 617-535-2966
dan.oneill@ironmountain.com
or
Investor
Contact:
Melissa Marsden, 617-535-8595
melissa.marsden@ironmountain.com