TSX Symbol - CDI.UN
TORONTO, June 14 /CNW/ - EdgeStone Capital Fund III (Canada) L.P.
("EdgeStone") and Custom Direct Income Fund (the "Fund") (TSX: CDI.UN) today
announced that EdgeStone has completed its indirect acquisition of Custom
Direct LLC ("Custom Direct"), the Fund's operating business.
With the completion of the acquisition, the Fund's unitholders will
receive CDN$10.20 per unit of the Fund (subject to applicable withholding
taxes), payable in cash upon redemption of their units, for total
consideration of approximately CDN$199 million.
In accordance with the Fund's Declaration of Trust, as amended and
approved by the Fund's board of trustees, units of the Fund will be redeemed
on or about June 19, 2007, following which the affairs of the Fund are
expected to be wound-up as promptly as possible. The Fund units will be
delisted from the Toronto Stock Exchange on June 18, 2007 following the close
of trading. Following the delisting, unitholders of record will also be
entitled to a final distribution of CDN$0.04875 per unit (net of any
applicable withholding taxes). The final distribution equals a pro rata amount
of the Fund's normal monthly distribution of CDN$0.1125 per unit for the
period from June 1, 2007 up to but excluding June 14, 2007.
EdgeStone is one of Canada's leading private equity firms and has managed
in excess of CDN$2.3 billion of private capital on behalf of institutional and
high net worth clients. EdgeStone provides capital, strategic direction and
business and financial advice to help promising mid-market and early-stage
companies achieve their full potential. EdgeStone leverages the resources of
its broad business network and ensures an alignment of interests to achieve
superior returns for all stakeholders. EdgeStone is one of the principal
entities of the GMP Capital Trust group (TSX:GMP.UN).
About Custom Direct Income Fund
Based in Maryland and Arkansas, Custom Direct has been selling cheques,
cheque-related accessories, and other products and services directly to
consumers across the United States since 1992, and offers the industry's
widest selection of cheque designs. Custom Direct is a direct marketer and the
second largest participant in the direct-to-consumer segment of the U.S.
cheque industry. The Fund acquired the Custom Direct business in connection
with the Fund's initial public offering in May 2003. For the year ended
December 31, 2006, Custom Direct had revenues of US$114.8 million.
Further information can be found in the disclosure documents filed by
Custom Direct Income Fund with the Canadian securities regulatory authorities,
available at www.sedar.com.
Genuity Capital Markets is acting as financial advisor to the Fund and
BMO Capital Markets is acting as financial advisor to EdgeStone. Torys LLP is
acting as legal counsel to the Fund and Osler, Hoskin & Harcourt LLP is acting
as legal counsel to EdgeStone.
We make statements in this release that are considered forward-looking
statements. Forward-looking information consists of disclosure regarding
possible events, conditions or results that is based on assumptions about
future economic conditions and courses of action. Forward-looking statements
are identified by the use of such words as "may," "could," "should," "would,"
"anticipates," "estimates," "expects," "intends," "plans," "predicts,"
"projects," "believes," "suspects," or words, phrases or expressions of
similar wording. These statements reflect management's current beliefs and are
based on information currently available to management, but indicate
management's expectations of future growth, results of operations, business
performance, and business prospects and opportunities. Any forward-looking
statements made are as of the date of this release, and the Fund assumes no
obligation to update or revise them to reflect new events or circumstances.
- involve significant risks and uncertainties,
- should not be read as guarantees of future performance or results, and
- will not necessarily be accurate indications of whether or not the
times at or by which such performance or results will be achieved.
A number of factors could cause actual results to differ materially from
the results discussed in the forward-looking statements. Should one or more of
these uncertainties materialize or should the underlying assumptions prove
incorrect, actual results may vary from those expected. Given the
uncertainties surrounding forward-looking statements, you should not place
undue reliance on these statements.
For further information:
For further information: Brian D. Briggs, Senior Vice President-Finance
and Chief Financial Officer, firstname.lastname@example.org, (866) 712-7096,
www.cdifund.com, TSX Symbol - CDI.UN