Clairvest Group Inc.

May 15, 2008 17:59 ET

Clairvest to Make Full Provision for Investment in Integral Orthopedics

TORONTO, ONTARIO--(Marketwire - May 15, 2008) - Clairvest Group Inc. (TSX:CVG) today announced that it will make a full provision for its investment in Integral Orthopedics Inc. (IOI) for the year ended March 31, 2008.

"IOI's performance has deteriorated significantly over the last quarter and we believe that it is a prudent time to make a full provision for this investment," said Ken Rotman, Co-Chief Executive Officer and Managing Director of Clairvest Group.

The amount of the provision is $6.3 million. The impact of the provision on Clairvest's book value per share on an after-tax basis is a reduction of $0.33, or about 2%.

Mr. Rotman added: "IOI is working with its various stakeholders to restructure its balance sheet in support of a new strategy with a renewed focus on the Canadian market, where the company's core brand remains strong."

About Clairvest

Clairvest Group Inc. is a Canadian merchant bank that invests its own capital, and that of third parties through Clairvest Equity Partners Limited Partnership and Clairvest Equity Partners III Limited Partnership, in businesses that have the potential to generate superior returns. In addition to providing financing, Clairvest contributes strategic expertise and execution ability to support the growth and development of its investee partners. Clairvest realizes value through investment returns and the eventual disposition of its investments.

Forward-looking Statements

This news release may contain forward-looking statements with respect to Clairvest Group Inc., its subsidiaries and their investments. These statements are based on current expectations and are subject to known and unknown risks, uncertainties and other factors, including the possibility that IOI's management is unable to restructure the company's balance sheet to support the new strategy effectively.

Contact Information

  • Clairvest Group Inc.
    Lana Reiken
    Chief Financial Officer and Corporate Secretary
    (416) 925-9270
    (416) 925-5753 (FAX)