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Uk Company Buy Collector of Empty Cartridges I.T.P. For £4m
Restore Group acquires collector of empty cartridges ITP for £4m
By Jessica FinoSupport services to offices group Restore acquired Takeback and Office Green (ITP), a collector of empty printing cartridges, for £4m.
ITP collects empty printer cartridges and sells them on to cartridge re-manufacturers and original equipment manufacturers.
Restore said the acquisition is in line with the group's strategy to offer additional office services and enhance its recycling capabilities. It added ITP will add customer base and volumes.
The acquisition will cost up to £4m, with an initial payment of £3.2m, a further £0.4m payable after a six month handover period and an additional payment of up to £0.4m based on performance during that period.
ITP reported full-year operating profit of £1.1m and turnover of £4.5m for the year ended 31 May 2015.
Restore's chief executive Charles Skinner said: "The acquisition of ITP further broadens the scope of services we offer our customers and enhances our presence in the recycling of office products.
"We believe this transaction provides us with another excellent platform for growth and the board looks forward to the contribution to the group that ITP will make."
N+1 Singer analysts said the acquisition takes the group into a complementary area and "looks like a classic, inexpensive Restore bolt on, with clear cross selling opportunities".
"On first take, we would expect the deal to be earnings enhancing by 2 to 3% in a full year.
"We see scope for more earnings enhancing deals later on in the year," the broker added.
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