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.
For further information:
Stephen Taylor, CFO
IBI Group Inc.
55 St. Clair Avenue West, 7th Floor
Toronto, ON M4V 2Y7
Bayfield Strategy, Inc.