Russell Poore set out to raise a search fund but ultimately decided to conduct an unfounded search . He identified two target companies in the document destruction business, one in Salt Lake City, Utah and one in Phoenix, Arizona. He raised capital from one private equity firm and, in January 1998, the team acquired the two businesses and formed US Shred. The Salt Lake City company was in Chapter 11 immediately proceeding the acquisition and Poore spent a great deal of time and his own capital to move the company out of Chapter 11. Poore managed operations in Phoenix and brought in a partner, Tim Ranzetta, to managed the Salt Lake City operation. They were successful in growing both companies and in winning a major contract with US Bank, which caught the eye of their biggest competitor, ShredFast. ShredFast and US Shred merged in June 1999. The combined entity was sold to Omega, a US subsidiary of a large Australian holding company in January 2001. The case highlights Poore key decisions with respect to raising capital, pursuing the US Bank contract, merging with ShredFast, the management conflicts that arose in that partnership and the ultimate decision to sell to a large corporation.
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