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- Redishred Capital (OTCPK:RDCPF) said Monday it acquired Confidential Shredding LLC, which provides on-site paper and hard drive shredding, product destruction and paper recycling services.
- Including profits, the purchase price is expected to be between $3.2 million and $3.5 million.
- Confidential has revenue of $1.9 million in 2023 and expects EBITDA margins of 40% to 45%.
- The company believes the acquisition will be accretive to cash flow and earnings per share.
- The transaction was financed through the utilization of the company’s senior credit facility, the company said.
- “The acquisition of Confidential allows us to further strengthen our footprint in the New Jersey and New York regions, including the five boroughs of New York City,” said Kasia Pawluk, Redishred’s senior vice president of acquisitions. “We expect to achieve route, administrative and operational integration as Confidential’s routes align with ours. There is significant overlap in routes from existing locations, so sales synergies can be created.
