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MISSISSAUGA, ON / ACCESSWIRE / December 3, 2021 / Redishred Capital Corp. (“Redishred” or “Company”) (TSXV: KUT, Financial) announces the completion of the acquisition of American Security Shredding Corp. (“American Shreddingâ€) effective December 1, 2021. American Shredding offers paper and hard drive shredding, product destruction and electronic waste recycling services. American Shredding primarily serves the New York and New Jersey markets, and had revenues of approximately US $ 4.1 million in fiscal 2020 and has a current run rate of 4. US $ 6 million in revenue for 2021.
The acquisition includes on-site hard drive and paper shredding trucks, crate trucks, containers, customer relations, paper baling equipment and other assets used in the business of shredding. Redishred considers this acquisition accretive to its cash flow and earnings per share.
Jeffrey Hasham, CEO of Redishred, said: “The acquisition of American Shredding gives us additional scale and penetration into the major metropolitan markets of New York and New Jersey, allowing us to achieve synergies with our existing operations and to increase our brand awareness and presence. We are very excited to bring the Shredding team and US customers to the Proshred family, and we look forward to capitalizing on the excellent value proposition this acquisition represents.
The purchase price of this acquisition included US $ 5.15 million paid at closing and consideration totaling US $ 3.4 million payable over three years, depending on the achievement of certain measures. financial. In order to maximize savings opportunities and ensure a smooth transition, the Company will capitalize on the knowledge of the former owner of American Shredding whom the Company retained for a period of 18 months under a contract. management consulting.
The Company financed this acquisition primarily through its acquisition loan facility.
About Redishred
Redishred Capital Corp. is the owner of PROSHRED® trademarks and intellectual property in the United States and around the world. PROSHRED® destroys and recycles confidential documents and proprietary materials for thousands of customers in the United States in all industries. PROSHRED® is a pioneer in the mobile document destruction and recycling industry and has ISO 9001: 2015 certification. He is PROSHRED®The vision of is to be the ‘system of choice’ and to provide shredding and recycling services globally. PROSHRED® currently serves more than 40 markets in the United States. Grants from Redishred Capital Corp. PROSHRED® franchises in the United States and through licensing agreements in the Middle East. Redishred Capital Corp. also directly operates fourteen shredding companies. The Company’s plan is to grow its business through both franchising and the acquisition and operation of document destruction businesses that generate stable and recurring cash flows through planned customer base, continuous paper recycling and simultaneous unscheduled shredding service.
FOR MORE INFORMATION, PLEASE CONTACT:
Redishred Capital Corp. (TSX.V: KUT) JeffreyHasham, MBA, CA, CPA
Chief Executive Officer [email protected]
Telephone: (416) 849-3469 Fax: (905) 812-9448
Where,
Redishred Capital Corp. (TSX.V: KUT) Kasia Pawluk, CA, CPA
Financial director [email protected]
Telephone: (416) 204-0076 Fax: (905) 812-9448
Note: The TSX Venture Exchange has neither approved nor disapproved of the information contained in this document.
This press release contains forward-looking statements that reflect the current expectations of Redishred’s management and the future results, performance, achievements, prospects and opportunities of Redishred. To the extent possible, words such as “may”, “will”, “estimate”, “believe”, “expect”, “intend” and similar expressions have been used to identify these forward-looking statements. . These statements reflect current beliefs and are based on information currently available to the management of Redishred. Forward-looking statements necessarily involve known and unknown risks and uncertainties. A number of factors, including those discussed in the 2020 MD&A under the heading “Risk Factorsâ€, could cause actual results, performance, achievements, outlook or opportunities to differ materially from the results discussed. or implied in forward-looking statements.
These factors should be considered carefully and the reader should not place undue reliance on forward-looking statements. There can be no assurance that the expectations of Redishred’s management will prove to be correct.
In particular, certain statements in this document relate to the outlook for future events at Redishred. These statements include, but are not limited to:
- An increase in cash flow and earnings per share of Redishred, which may be impacted by the level of costs, industry growth levels, demand for recycled paper products, changes in local and federal regulations and the economic situation in the United States; and
- Achieving synergies, which can be impacted by the successful integration of operations, procedures and personnel, and demand for services.
Readers are cautioned that these forward-looking statements are subject to certain risks and uncertainties which could cause actual results to differ materially from such statements. Redishred cannot guarantee that actual results will be consistent with these forward-looking statements.
THE SOURCE: RediShred Capital Corp.
See the source version on accesswire.com:
https://www.accesswire.com/675871/RediShred-Capital-Corp-Announces-the-Acquisition-of-American-Security-Shredding-Corp
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