|By Business Wire||
|September 3, 2014 08:47 AM EDT|
Recall Holdings Limited (ASX: REC), a global leader in information management solutions, today announced that it has entered into an agreement to sell its Germany Secure Destruction Services (SDS) business to Rhenus Data Office GmbH. The sale is subject to final regulatory approval from the German competition regulator (Federal Cartel Office), and is anticipated to close later this calendar year.
The sale, which represents a modest gain for Recall, will reduce full year revenue by approximately US$13.5 million, but is expected to be earnings accretive in FY15, assuming the transaction is closed within 1Q FY15. Following the transaction, Recall’s total depreciation and amortization expense in FY15 is expected to be approximately US $75M, which includes increased depreciation from capital spending and amortization of acquisitions and customer perm-out fees.
As reported in Recall’s FY14 earnings release, Recall conducted a strategic review of its SDS business and announced its intention to sell the Germany SDS business. Going forward, Recall will continue to focus on growing its Document Management Solutions (DMS), Data Protection Services (DPS) and digital businesses across the German markets.
Recall is a global leader in information management solutions, offering customers complete management of their physical and digital information. Recall’s innovative solutions empower organizations to make better business decisions throughout the information lifecycle, while assuring regulatory compliance and eliminating unnecessary resources, time and costs. Recall services more than 80,000 customer accounts in over 300 dedicated facilities, spanning five continents in 24 countries. For more information, please visit recall.com.
The Rhenus Group provides logistics services around the globe and has annual turnover amounting to EUR 4.1 billion. Rhenus employs over 24,000 people at more than 390 locations worldwide. The Rhenus business areas – Contract Logistics, Freight Logistics, Port Logistics and Public Transport – manage complex supply chains and provide a wealth of innovative value- added services. For more information, please visit rhenus.com
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