Morneau Sobeco Income Fund
TSX : MSI.UN

Morneau Sobeco Income Fund

June 02, 2006 09:15 ET

Morneau Sobeco Income Fund Completes the Acquisition of Heath Benefits Consulting Inc.

TORONTO, ONTARIO--(CCNMatthews - June 2, 2006) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Morneau Sobeco Income Fund (the "Fund") (TSX:MSI.UN) is pleased to announce that a subsidiary of the Fund has completed yesterday its acquisition of all of the issued and outstanding shares of Heath Benefits Consulting Inc. ("Heath").

With this acquisition, Morneau Sobeco's Vancouver office becomes the third largest in the organization, after Montreal and Toronto. "Combining our operations provides us with an improved platform to enable continued growth in Western Canada," said Bill Morneau, President and CEO of Morneau Sobeco.

The final purchase price, estimated to be approximately $15.5 million, is being paid in three installments and is satisfied primarily through the assumption of the current Heath debt of $4.7 million, and the issuance of units of Morneau Sobeco Income Fund or securities exchangeable for such units. The first installment of the purchase price is made on closing, and the second and third installments - plus distributions payable on the installments - are conditional upon the success in retaining and growing revenue from current Heath clients, as well as achieving targeted cost efficiencies.

Morneau Sobeco has welcomed a new office in Winnipeg, and is currently finalizing the consolidation of its own operations with Heath's in Vancouver, Calgary, Winnipeg, Toronto and Ottawa. The transition project is well underway, and most tasks are expected to be completed by the end of June.

According to David Haber, Heath's President, who is joining Morneau Sobeco's senior management team as an Executive Vice President in Vancouver, "Morneau Sobeco's dynamic team is facilitating our transition into the firm so that we are able to focus our attention on our clients and employees, keeping them engaged as we work on delivering improved and expanded services."

"Our key objectives in this acquisition are to integrate our business and operations seamlessly, to achieve significant synergies, and most of all, to exceed the expectations of all clients of Heath and Morneau Sobeco," commented Mr. Morneau. "We are truly delighted to welcome Heath's clients, and look forward to having the Heath employees as part of the Morneau Sobeco team," he concluded.

About Morneau Sobeco

Morneau Sobeco is the largest Canadian owned pension and benefits consulting and outsourcing firm, providing services to organizations across Canada and in the United States. With approximately 950 employees in offices in 11 cities across North America, Morneau Sobeco has focused on the integrated design and delivery of pension and benefit plans for over 40 years.

Forward-Looking Statements

This news release contains "forward-looking statements" within the meaning of applicable securities laws, such as statements concerning the acquisition's financial contribution to Morneau Sobeco and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. These statements are not guarantees of future performance and are subject to numerous risks and uncertainties, including those described in our annual information form. Those risks and uncertainties include reliance on information systems and technology, reputational risk, dependence on key clients, reliance on key professionals and general economic conditions. Many of these risks and uncertainties can affect our actual results and could cause our actual results to differ materially from those expressed or implied in any forward-looking statement made by us or on our behalf. All forward-looking statements in this news release are qualified by these cautionary statements. These statements are made as of the date of this news release and, except as required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Additionally, we undertake no obligation to comment on analyses, expectations or statements made by third parties in respect of Morneau Sobeco, its financial or operating results or its securities.

Contact Information

  • Morneau Sobeco Income Fund
    W.F. (Bill) Morneau, Jr.
    President and Chief Executive Officer
    (416) 445-2700
    (416) 445-7989 (FAX)
    www.morneausobeco.com