In a move likely to determine the landscape of the document shredding business for years to come, two leaders in the segment merged this week, creating one dominant superpower in the market. Cincinnati-based Cintas Corporation has built its business base on delivering various services to businesses, ranging from restroom supplies to document management services, while Shred-It has built its reputation on secure document destruction services. Both companies are looking to combine their extensive industry contacts and expand under the Shred-It brand, avoiding competition that has only served to limit market share for firms.
Of course, we at Acuity are familiar with Cintas. In September 2010, we concluded the sale of Preview Services, one of Europe’s leading document management companies, to Cintas. Based in Middlesex, the 200-person firm had nurtured a broad portfolio of satisfied clients, including household names such as The AA, Philips and Waterstone’s. In doing so, Preview had become a valued Business Process Outsourcing (BPO) solution for many organisations throughout the UK. At the time, Preview’s management team decided that the time was right for an exit – a decision which was compounded by the company’s inability to win major tenders against much larger competitors with comparable, but not superior, services.
We’re happy therefore to see Cintas carry on its modus operandi of continued expansion and growth, with the newly formed partnership with Shred-It set to see $600 million in annual revenues. Cintas CEO Scott Farmer certainly believes in the new, brighter future. “Together, we expect that Cintas Document Shredding and Shred-it will be the industry leader, benefitting from increased scale, resources and strong cash flow to uniquely position the new company to provide world class information protection services to its customers,” he said at the signing of the ground-breaking deal.
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