TORONTO, Oct. 2, 2014 /CNW/ - IBI Group Inc. (the
"Company") (TSX: IBG) is pleased to announce that the Company has
reached an agreement to sell the Quebec assets and operations of IBI/DAA Group
Inc., CHB-IBI Group Inc., Martin, Marcotte/Beinhaker Architectes,
and related entities to Services Intégrés Lemay & Associés Inc.
("Lemay").
The Company also sold a 30 percent equity interest in IBI Group
Urban Consultant (Beijing) Co.
Ltd. ("IBI China") to Lemay and a 19 percent equity interest to
Daniel Arbour ("Arbour"). The
strategic partnership with Lemay in China enables IBI Group to continue to benefit
from domestic and offshore investment by Chinese state and private
enterprises.
These asset sales are part of IBI Group's previously announced
recapitalization and strategic initiatives that included the sale
of assets and the reduction of amounts under its senior credit
facility. IBI Group's Quebec
operations represent approximately 10% of the Company's revenues
but were not a meaningful contributor to net earnings.
Subject to final closing adjustments, the proceeds from the
asset sales are expected to be approximately $12 million, and will be utilized to reduce
existing indebtedness under the Company's credit facility.
"The sale of these assets is a meaningful step in our
continued effort to refocus and reposition IBI to improve long-term
growth prospects and operational performance. We are pleased to
have reached an agreement with Lemay and are looking forward to
collaborating with them and Daniel
Arbour as strategic partners in IBI China," said
Scott Stewart, CEO.
About IBI Group Inc.:
The Company is a TSX listed corporation and its common shares
trade under the symbol "IBG".
IBI Group is a globally integrated architecture, planning,
engineering, and technology firm with professionals around the
world. For more than 40 years, our dedicated professionals have
helped clients create livable, sustainable, and advanced urban
environments. We are one of the largest architecture firms in the
world.
From high-rises to industrial buildings, schools to
state-of-the-art hospitals, transit stations to highways, airports
to toll systems, bike lanes to parks, we design every aspect of a
truly integrated city for people to live, work, and play.
We organize our expertise into three areas:
- Intelligence: systems designer, software development.
- Buildings: building architecture, building engineering
(mechanical, structural, electrical).
- Infrastructure: planning, urban design, landscape architecture,
transportation, and engineering.
Our collaborative and combined approach focuses not only on
creating the best solutions today, but also creating the right
solutions for tomorrow.
We believe cities must be designed with intelligent systems,
sustainable buildings, efficient infrastructure, and a human
touch.
At IBI, we're defining the cities of tomorrow.
SOURCE IBI Group Inc.