Iron Mountain Acquires Cornerstone Records Management
Deal grows company’s storage business in U.S. and expands its roster of
BOSTON -- October 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
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.
Visitwww.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.
Dan O’Neill, 617-535-2966
Melissa Marsden, 617-535-8595
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