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Iron Mountain® Incorporated
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.
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