EAC INVEST A/S 16 November 2017
Company Announcement No 9/2017Santa Fe Group A/S has reached an agreement with Iron Mountain Inc. whereby the Group's Records Management activities in China and the warehouse in Beijing will be sold to Iron Mountain against a cash consideration of EUR 23.0m. The divestment is expected to result in a net gain of approximately EUR 19m and net proceeds after tax of around EUR 15m.
The divestment is in accordance with Santa Fe Group's strategy to focus on the core mobility services, consisting of the business lines Moving Services and Relocation Services, and divest the remaining non-strategic activities to create optimum value for the Group. It follows naturally from the divestment of Records Management activities in 10 other markets to Iron Mountain Inc., which took place in 2016-17 against a cash consideration of EUR 27.1m (ref. announcements 7/2016, 9/2016 and 11/2016) and the buy-out of the 50% minority shareholder in Sino Santa Fe at EUR 5.0m earlier this year (ref. announcement 3/2017).
Santa Fe Group consider Iron Mountain to be perfectly positioned to further develop the Records Management business to the benefit of the customers and employees in China, similar to what has been accomplished elsewhere. At the same time, this divestment simplifies the focus of Santa Fe, and enables the Group to proceed with the strategic initiatives to become the leading global provider of international relocation and mobility services.
The activities being sold are expected to generate full-year revenue of around EUR 4.5m and an EBITDA result of around EUR 2m. Closing is anticipated towards the end of 2017 but could be delayed into 2018.
The net gain on the divestment of the Records Management activities in China will be recognised as Special Items. Santa Fe Group A/S will reflect estimated accounting impact of the divestment in a revised Outlook for 2017 in today's announcement on the Interim Report for Q3.
For additional information, please contact:
Martin Thaysen, Group CEO, tel. +44 20 3691 8300, e-mail Martin.Thaysen@santaferelo.com
Christian Møller Laursen, Group CFO, tel. +44 20 8963 2514, e-mail Christian.Laursen@santaferelo.com
Santa Fe Group A/S published this content on 16 November 2017 and is solely responsible for the information contained herein.
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