BOSTON--(BUSINESS WIRE)--Iron Mountain Incorporated (NYSE: IRM), the storage and information management services company, has received requisite approval from the Australian Competition and Consumer Commission (ACCC) to sell the majority of its Australian records management business (as it existed prior to the acquisition of Recall) to a consortium led by Housatonic Partners for a total consideration of approximately A$70 million, subject to adjustments.
Housatonic Partners is a private equity firm focused on investing in growing, profitable companies in the business services, tech-enabled services and healthcare industries. Founded in 1994, Housatonic has offices in San Francisco, California, and Boston, Massachusetts and has owned and operated records management companies in the United States and Europe.
As disclosed on March 31, 2016, the ACCC decision not to oppose the acquisition of Recall was contingent on Iron Mountain’s undertaking to divest its Australian business, except for its data management business throughout Australia and its records and information management and data management businesses in the Northern Territory of Australia, which were transferred to Iron Mountain’s combined Australian company following the acquisition of Recall.
Completion of the sale of Iron Mountain’s Australian business to the consortium had been subject to the ACCC’s approval, which has now been confirmed. The parties currently expect the transaction to close within 7 to 10 days of this announcement. Iron Mountain expects to record a non-cash impairment charge during the third quarter of 2016 of approximately $14.0 million. This impairment charge will impact Q3 2016 GAAP Earnings per Share (EPS) but will be excluded from Adjusted EPS.
About Iron Mountain
Iron Mountain Incorporated (NYSE: IRM) is the global leader for storage and information management services. Trusted by more than 220,000 organizations around the world, Iron Mountain boasts a real estate network of more than 80 million square feet across more than 1,350 facilities in 45 countries dedicated to protecting and preserving what matters most for its customers. Iron Mountain’s solutions portfolio includes records management, data management, document management, data centers, art storage and logistics, 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 critical business documents, electronic information, medical data and cultural and historical artifacts. 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 anticipated closing of the sale of Iron Mountain’s legacy business as well as the anticipated impairment charge related thereto. 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: Iron Mountain’s ability to close the proposed sale in accordance with its terms. Additional risks and factors that may affect results are set forth in Iron Mountain’s filings with the Securities and Exchange Commission, including Mountain’s filings with the Securities and Exchange Commission, including under the caption “Risk Factors” in Iron Mountain’s periodic reports,. 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.