Integra Certified Document Destruction of Elkhart, Indiana has announced the acquisition of Tri Noble Secure Document Destruction of Bristol, Indiana. The company will continue to operate under the Integra name.
Integra not only offers shredding but also recycling and waste hauling services. They have been servicing Indiana for over 75 years.
The standards to operate a shredding service continue to increase. It is more difficult to break into the business today than it was years ago. The mobile shredders are faster than they have ever been but they are also more expensive. The security requirements have also been raised with the implementation of HIPAA and FACTA.
Companies that can no longer provide the security that customers demand will have an increasingly harder time staying in business. Good employees are worth their weight in gold. But that also means the costs of providing the service increases. Always beware of any company that does not take the time to perform a background check on every employee.
Cintas has acquired 3GS of Knoxville, TN. 3GS has grown from a single location in Tennessee to over a dozen locations around the Southeast and Midwest. They provided shredding services, document imaging, and document storage solutions. This ends the year with a bang in the acquisition market for shredding companies.
It appears that as other companies have slowed down their acquisitions that Cintas remains a strong buyer. Most acquisitions are now coming from private equity funds looking to create regional service providers. The goal of creating the regional firms is to then sell it off to a national company. Assuming 3GS made money on the aggregation then it is likely we will see more of this aggregation process in the coming years.
While many people see the day when there are not local providers I don’t think that will happen. National chains have several advantages over their competitors. But the national chains also have some disadvantages. In today’s market it is much more important to provide good service than to be the biggest.
The security of business documents is too important to pick someone based on how many pagers are in their brochure. Whether they are big or small the winner will be the company that provides security and value.
Business Records Management (BRM)of Pittsburgh, Pennsylvania has acquired The Paper Exchange, also of Pittsburgh, Pennsylvania. This expands the shredding and records storage capacity of BRM. This acquisition fall on the heals of their spring acquisition of Underground Archives.
The Paper Exchange was started in 1996 by brothers Jeff and Dan Prunzik. They have rapidy grown into one of the largest shredding services in the area. They offer both on and off site shredding services to customers in Eastern Pennsylvania. They also have records storage facility.
A strong focus on customer service has been a hallmark of The Paper Exchange. We have received great feedback from their customers since we have been working with them. I am sure BRM will benefit from the strong foundation they have built.
BRM plans to continue operating the shredding plant from The Paper Exchange but will look to consolidating the records storage facility. Financial details of the deal were not released.
Cornerstone Records Management has expanded their shredding capacity in Delaware with the acquisition of Document Security Management (DSM). DSM provides mobile shredding and hard drive destruction services to the Delaware Valley including Philadelphia. The operations will be folded into the eastern region of Cornerstone. This marks the 24th acquisition buy Cornerstone in the last four years.
The mergers and acquisition part of the shredding industry remains very active. There are still several players looking to grow their footprint into a national one. It will be interesting to see if the regional companies finish out their national footprints or look to roll up into and existing national company.
DeVries Business Service of Spokane, Washington has announced the acquisition of Green Shred of Pasco Washington. This acquisition expands the services of DeVries into northeast Oregon. It is also the fourth mobile shred truck in the companies fleet. Financial terms of the deal were not disclosed.
Pat DeVries, President of DeVries Business Services said that Green Shred clients were looking for more services than just the mobile shredding the Green Shred offered. They are wanting to cross sell their document storage solutions to them.
There has been a move to integrate shredding into the rest of the records information management (RIM) industry for several years. It provides a cradle to grave solution for all the companies documents. As long as the company treats both services as unique then it will work out very well. The mistake that some people make is to treat shredding exactly like document storage services. They might not treat the smaller business with the same attention because they don’t have the hundreds of boxes that need shredded.
If you are having a problem getting great customer service out of your RIM provider we are happy to help. Shred Nations works with a variety of service providers. Each has their own advantages and we put you in contact with the best fit. That may be once a week or once a year. It can be one box serviced through Ship ‘n’ Shred or thousands of boxes shredded at your location. But what every request has in common is they are valuable documents to somebody. If they weren’t you would just leave them in the recycle bin.
It was just a month ago that there were only two bidders left for Recall. At the time it looked like Shred-it had the inside track but Cintas was still lurking in the background. Now we know that no company was able to meet the reserve that Brambles had for the US records storage and document shredding service.
To help pay down the debt they had planned to do with the sale of Recall; Brambles is issuing $432.3 million in new shares. Brambles is the world leader in wooden pallets and wanted to focus on its core business. Chairman Graham Kraehe said that the offers “did not reflect its value.”
So now the biggest piece that was in play is off the market. I hope for the employees at Recall that it will bring them some stability. The company has gone through a series of different goals over the last five years as Brambles has vacillated between wanting to keep and wanting to sell Recall. It is probably not a stretch to think they are now going to ramp up their marketing efforts. The goal is no longer to reduce expenses to drive up short term profit.
Document management remains a competitive market. Regional players are still growing to compete with the national providers. This can be done organically or through acquisition. It looks like this summer is going to be a busy one for mergers and acquisitions. So keep your seat belts on and tuned in to Shred Nations as we report on it all.
Recall , a subsidiary of Australia’s Brambles Ltd is still on the sales block but for how long is not clear. Rueters is reporting that the company is in serious talks with Shred-it. There have been discussions with Birch Hill Equity Partners, the owners of Shred-it, with banks to finance the deal.
Brambles wants to complete a sale by May and time is running out on that deadline. The process has been slowed as several suitors balked at the $2 billion valuation for Recall. Several private equity firms have dropped out of discussions that were taking place at the first of the year. But Cintas may still be part of the discussion.
Recall offers records storage services and document shredding services in North America. Bramble is interested in divesting several of its divisions to focus on their core business of pallet sales.
The one name that never seems to get mentioned is Iron Mountain. This acquisition would fit into their plans of focusing on hard copy storage. There must not be a good fit between the two organizations. As a public company Iron Mountain should be able to raise the capital needed for the purchase.
The difficulty in purchasing Recall will be to integrate the culture. As Brambles has alternately focused on and left Recall on autopilot they look like they have lacked a clear focus. Better leadership should be able to get a great deal more out of their existing customers and locations.
Northern Michigan is getting a new document shredding service. Tim Ridley and Denis Droope are opening Great Lakes Secure Shredding in West Branch. The company will offer off-site shredding and drop off shredding. They will pick up between Standish and Mackinac Bridge.
The company is currently installing their shredder and baler. They hope to be operational by the first of February. They plan on using flex fuel vehicles to be a greener company.
It is nice to see new companies entering the market. With all the consolidation in the market the natural response is new local services starting up. An efficient market will always spawn new companies.
Shred360 of Columbia, South Carolina, has announced the purchased Secure Shred of Spartanburg South Carolina. The combined company will continue to operate as Shred360. Financial details of the sale were not disclosed.
The shredding industry continues the move to more consolidation. Not only are the large national chains acquiring new companies but regional are doing the same thing. But for every company that gets acquired there is a an owner who is now past their non-compete and looking to start back into the business. I don’t forsee the end of the local shredder in the near future.
Allshred Services has expanded its customer base in Columbus, Ohio with the acquisition of Mid Ohio shredding. Allshred currently services six states from their headquarters in Maumee, Ohio. This acquition is part of the companies goal of increasing their presence in Columbus. Details of the deal were not realeased.