Research Update: Iron Mountain Inc. Outlook Revised To Stable From Negative; 'BB-' Rating Affirmed; New Debt Rated

Boston-based global storage and information management services company Iron Mountain Inc. (IRM) announced the acquisition of 80% of ITRenew, an information technology (IT) asset disposition company for about $725 million with the remaining 20% to be acquired within three years of close for a minimum enterprise value of $925 million. IRM plans to fund the acquisition with $500 million of senior unsecured notes and availability under its revolving credit facility. Although the acquisition is debt-funded, the transaction expands IRM's presence in the expanding IT asset disposal industry and moderately lessens its business dependency on the mature records storage industry. We expect IRM to reduce its S&P Global Ratings-adjusted leverage below 6x in 2022 on reduced restructuring costs and continued revenue

...- Boston-based global storage and information management services company Iron Mountain Inc. (IRM) announced the acquisition of 80% of ITRenew, an information technology (IT) asset disposition company for about $725 million with the remaining 20% to be acquired within three years of close for a minimum enterprise value of $925 million. IRM plans to fund the acquisition with $500 million of senior unsecured notes and availability under its revolving credit facility. - Although the acquisition is debt-funded, the transaction expands IRM's presence in the expanding IT asset disposal industry and moderately lessens its business dependency on the mature records storage industry. - We expect IRM to reduce its S&P Global Ratings-adjusted leverage below 6x in 2022 on reduced restructuring costs and continued revenue growth across multiple business lines, including its data centers and digital solutions, as well as ITRenew. - Accordingly, we affirmed our '##-' issuer credit rating on IRM and revised...

Research Update