Iron Mountain Reports Acquisition Activity

Iron Mountain Inc. provided an update on its year-to-date acquisition activity.

The company has invested approximately $150 million to acquire international records and information management related businesses; additionally, it has invested $12 million this year to acquire the records inventory of eleven document storage companies, including ten organizations in North America and one in Belgium.

Acquisitions are a key component of its strategic initiative to sustain the durability of its business in high-return, developed markets and to establish market leadership in high-growth emerging markets.

Included in the year-to-date amounts are the buyout of the company’s JV partners’ interests in Serbia, Denmark, Russia and the Ukraine. Since the close of the third quarter, the company acquired A.L.C.Z s.r.o., a provider of records management services in the Czech Republic, increasing the size of Iron Mountain’s business there by 15%.

Also during October, the company closed on the purchase of Keepers Brazil, further expanding Iron Mountain’s footprint in emerging markets. Keepers provides records and data protection storage and services to more than 300 customers across various sectors including: banking, financial, healthcare, automotive, education and government. In aggregate, Keepers stores and manages 1.4 million boxes and more than 95,000 tapes across five facilities in Sao Paulo.

“Keepers is a successful records management company serving large corporations as well as small and mid-size firms in Sao Paulo,” said Luiz Alves, Iron Mountain’s country manager. “We are pleased to welcome their customers and will continue to provide them with secure storage, high-quality service and expert advice.”

Brazil’s records management market is expected to continue to grow in the high single digits annually for the next three to five years, and Keepers achieved compounded annual revenue growth of 9% over the past four years.

“This acquisition expands our presence in Brazil, one of the key emerging markets for outsourced records management. It also advances our strategy for growth, which is designed to enhance the durability of our business, enabling us to deliver attractive stockholder returns,” said William Meaney, president and CEO, Iron Mountain. “Keepers is our fourth acquisition in Brazil in the last two years. We are achieving steady improvement in profits and returns as we continue to enhance our leadership position there, and we anticipate further enhancement as we shift operations to our new campus in Hortolandia, near Sao Paulo over the next few years.“

The company expects limited impact on 2014 results from these acquisitions and will provide additional details on the contribution from recent acquisitions and related capital requirements when it provides preliminary 2015 guidance when reporting third quarter results on October 30, 2014.