Redishred Capital Corp. Acquires Confidential Shredding in New York and New Jersey

MISSISSAUGA, ON / ACCESSWIRE / July 29, 2024 / Redishred Capital Corp (TSXV: KUT) has completed the acquisition of Confidential Shredding LLC, effective July 29, 2024. Confidential offers on-site paper and hard drive shredding, product destruction, and paper recycling services. In 2023, Confidential achieved approximately $1.9 million USD in revenue.

The pro forma EBITDA margin of Confidential is estimated to range between 40% and 45%, and the acquisition is expected to be accretive to Redishred's cash flows and earnings per share. The acquisition includes shredding trucks, containers, client relationships, and other assets.

Kasia Pawluk, Senior Vice President of Acquisitions, emphasized that the acquisition enhances Redishred's footprint in New Jersey and New York. She anticipates routing, administrative, and sales synergies due to overlapping routes with existing locations. She also thanked Joe Villani and Joe David for their dedication to Confidential over the past decade.

The purchase price, including earnouts, ranges from $3.2 million to $3.5 million USD, depending on certain financial results. The acquisition was financed through the Company's senior credit facility.