– ACCC to Begin Limited Market Testing of Proposed Divestment –
– Company Continues to Expect Transaction to Close in Second Quarter of
2016 –
BOSTON--(BUSINESS WIRE)--
Iron
Mountain Incorporated (NYSE: IRM), the storage and information
management services company, reports that the Australian Competition and
Consumer Commission (ACCC) has agreed to conduct market testing of Iron
Mountain’s proposed undertaking to divest Iron Mountain’s Australian
business in a stock sale, excluding its local records management
customers in the Northern Territory as well as its data management
business. Based on the proposed undertaking, Iron Mountain would merge
its Australian data management business and its records management
business in the Northern Territory into Iron Mountain’s combined
Australian company following the anticipated May 2, 2016 closing of the
Recall transaction.
Iron Mountain has proposed the divestiture of its Australian business,
excluding data management and Northern Territory local customers, in
order to enable the provision of services to local and national
customers in the major metropolitan areas in Australia by the eventual
buyer. The ACCC’s market testing of the proposed divestiture is expected
to take approximately two weeks with a final decision expected by the
end of March.
Iron Mountain continues to work closely with regulatory authorities in
other jurisdictions, and both Iron Mountain and Recall continue to
expect the transaction to close on or about May 2, 2016. The company
continues to expect the transaction to result in meaningful synergies
and accretion.
Regulatory review and approval is a normal part of the acquisition
process, and as previously disclosed, Iron Mountain has agreed to make
certain divestments, if required to address competition issues including
divestments of certain assets, among other possible remedies.
Iron Mountain stockholders overwhelmingly approved the issuance of
shares for the acquisition of Recall on November 19, and the Recall
Board of Directors continues to unanimously recommend that its
shareholders vote in favor of the transaction.
About Iron Mountain
Iron Mountain Incorporated (NYSE: IRM) is a leading provider of storage
and information management services. The company’s real estate network
of more than 69 million square feet across more than 1,100 facilities in
37 countries allows it to serve customers around the world. And its
solutions for records
management, data
management, 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.
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 expected timing of the
closing of Iron Mountain’s proposed acquisition of Recall, the outcome
of the regulatory review of the transaction, the scope and timing of
required divestitures, Iron Mountain’s financial performance outlook and
shareholder returns, including after giving effect to Iron Mountain’s
proposed acquisition of Recall, and statements regarding Iron Mountain’s
goals, beliefs, plans and current expectations. 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: (i) Iron Mountain’s actual dividends when paid
may be materially different than Iron Mountain’s estimates; (ii) the
cost to comply with current and future laws, regulations and customer
demands relating to privacy issues; (iii) the impact of litigation or
disputes that may arise in connection with incidents in which Iron
Mountain fails to protect its customers' information; (iv) changes in
the price for Iron Mountain’s storage and information management
services relative to the cost of providing such storage and information
management services; (v) changes in customer preferences and demand for
Iron Mountain’s storage and information management services; (vi) the
adoption of alternative technologies and shifts by Iron Mountain’s
customers to storage of data through non-paper based technologies; (vii)
the cost or potential liabilities associated with real estate necessary
for Iron Mountain’s business; (viii) the performance of business
partners upon whom Iron Mountain depends for technical assistance or
management expertise; (ix) changes in the political and economic
environments in the countries in which Iron Mountain’s international
subsidiaries operate; (x) changes in the cost of Iron Mountain’s debt;
(xi) changes in the amount of Iron Mountain’s capital expenditures;
(xii) Iron Mountain’s ability to remain qualified for taxation as a real
estate investment trust; (xiii) Iron Mountain’s ability or inability to
complete acquisitions on satisfactory terms and to integrate acquired
companies efficiently; and (xiv) other trends in competitive or economic
conditions affecting Iron Mountain’s financial condition or results of
operations not presently contemplated. In addition, with respect to the
potential Recall transaction, Iron Mountain’s ability to close the
proposed transaction in accordance with its terms and within the
anticipated time period, or at all, is dependent on Iron Mountain’s and
Recall's ability to satisfy the closing conditions for the transaction,
including the receipt of governmental and shareholder approvals,
required divestitures, and the benefits of the potential Recall
transaction, including potential cost synergies and other synergies
(including tax synergies), may not be fully realized or may take longer
to realize than expected. Additional risks and factors that may affect
results are set forth in Iron Mountain’s filings with the Securities and
Exchange Commission, including Iron Mountain’s Annual Report on Form
10-K for the fiscal year ending December 31, 2015, and in Recall’s
filings with the Australian Stock Exchange, including Recall’s Annual
Report for the fiscal year ending June 30, 2015 and [Recall’s interim
financial statements] for the 6-month period ending December 31, 2015.
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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160309006396/en/
Source: Iron Mountain