Wincanton, the Chippenham-based logistics group, is to sell its records management division for £60m, it announced today.
The group has signed a conditional agreement to dispose of the business to Restore, the Surrey-based document management firm.
Wincanton said the disposal, which is being made on a cash and debt-free basis, would allow it to focus on its logistics operations. It will use the proceeds primarily to reduce its debt. 
Set up 14 years ago, Wincanton Records Management (WRM) provides its blue-chip customer base with services such as document storage, scanning and shredding. It covers the whole of the UK from its headquarters in Essex and has a significant presence in the Republic of Ireland. All 167 employees will transfer to Restore.
WRM made an operating profit of £3.5m on revenues of £22.4m in the year to March 31, 2015. Its gross assets were £22.2m on that date.
Wincanton chief executive Adrian Colman said: “The disposal of WRM realises material value for the group and allows us to make significant progress in reducing average net indebtedness, strengthening our balance sheet and providing greater capacity for future investment. Wincanton will be stronger, with a clear focus on its core skills and capabilities in logistics operations.”
Wincanton operates more than 4,000 vehicles and employs 15,500 people across 200-plus sites in the UK. Its shares rose by 2.2% to 207p this morning when the Restore deal was announced.
Restore is one of the UK’s leading records management and commercial relocation providers. It provides safe and secure services in document storage, online and tape storage, document shredding, office relocation, IT relocation and IT asset disposal.
