TORONTO, Dec. 8 /CNW/ - IBI Income Fund (The "Fund") (TSX:IBG.UN) today announced the sale of its wholly owned subsidiary, 9120-8272 Québec Inc. (Groupe Sodem). The purchaser is HELIOS Group Utilities and Facilities Management Inc.
Philip Beinhaker noted that: "Groupe Sodem was acquired in conjunction with the merger of the professional practice of the Daniel Arbour & Associates (DAA) Inc., in January 2006. During the past three years and eleven months, the Groupe Sodem business in the facility management of parks, arenas, pools, for various public and some private entities has continued productively under the leadership of Vincent Renaud and his capable well rounded management team. The business has continued to be focused geographically in the Greater Montreal Area with some activity in the Gatineau region and Eastern Townships. While the business has grown over this time, IBI has determined that there is less synergy with the IBI core business of the provision of our professional services for urban land, building facilities, transport networks and systems. Additionally, IBI and Groupe Sodem have not succeeded in growing the business beyond its geographic focus at the time of the merger. In contrast, Helios' core business is in the facility management activity and is now in joint venture on certain projects with Groupe Sodem which offers the opportunity for the Groupe Sodem management and staff working with Helios to grow the business more effectively. IBI has enjoyed a reasonable return on its investment during these years and with the sale will now realise the return of its initial investment in full, as well as release IBI from providing working capital support for financial performance obligations for work for Groupe Sodem clients to be refocused on the continuing growth of the IBI core professional service practice and business. IBI wishes Vincent Renaud and the management team continued success with the growth of Groupe Sodem now placed with the Helios Group of Companies."
About IBI Income Fund
The Fund is a TSX listed Income Trust, which pays monthly distributions and trades under the symbol "IBG.UN". The Fund holds an indirect 71.4% in the IBI Group, a Partnership which, directly and through its subsidiary entities, provides professional services, including planning, design, implementation, analysis of operations and other consulting services in relation to four main areas of development, being urban land, building facilities, transportation networks and systems technology. The remaining 28.6% of the IBI Group is owned by IBI Group Management Partnership which together with its share in the indirect interest of the Fund holds a combined 46.9% interest.
SOURCE IBI Group Inc.
For further information: For further information: Philip H. Beinhaker, IBI Income Fund, 230 Richmond Street West, Toronto, Ontario, M5V 1V6, Telephone: (416) 596-1930