IBI Income Fund announces the Merger of the Stevens Group Architects Inc. with IBI Group Architects
Mon, 31 Aug, 2009
IBI Income Fund (The "Fund") (TSX: IBG.UN) announced today the closing of the merger of the Stevens Group Architects Inc., with IBI Group Architects. Stevens Group Architects will continue as a distinct division within the IBI Group of Firms, operating as SGA-IBI Group Architects.
Since Richard Stevens founded the firm over 25 years ago, the practice has grown, especially in recent years with a focus on the architecture of transit and educational facilities, along with other building types, throughout the urban areas of Southern Ontario. The staff team has increased to over 35 members and the leadership broadened with Claudio Cellucci and Celia Johnstone joining in the firm's ownership along with other senior firm members.
Phil Beinhaker, Chairman Director and CEO of IBI Group Architects and of the IBI Group of Firms noted that, "Richard, together with Celia and Claudio, their senior colleagues and staff members have established an outstanding practice serving the transit industry in Toronto, Mississauga and elsewhere, school boards and other clients in a most creative and competent manner, including successful collaboration with many other firms in these fields. Indeed our two firms have been working together on both transit and educational facility projects. We will now be able to serve these clients more effectively on this fully integrated basis. The leadership is all committed to continue the practice of the SGA Firm in this merger with the IBI Group Architects within the IBI Group of Firms. We fully expect that the three senior and other leaders along with their staff totalling approximately 35, will achieve greater success through this merger and grow to assume, over time, roles of leadership in the ensuing years in the context of IBI Group. IBI Group Architects and the IBI Group are committed through this merger to the growth of the SGA-IBI Group practice through the provision of additional professional architectural resources, (all in accordance with regulations of the practice of architecture in Ontario and elsewhere in other respective jurisdictions), as well as complementing this expertise with professional services in urban planning, transportation, real estate research, systems technology and other areas of established IBI professional competence. With this affiliation, the total complement of professionals within the IBI Group of Firms is now in the order of 2,300 people operating through 68 offices worldwide. The SGA-IBI Group architects division can now participate in projects of the IBI Group of Firms on this global basis. The consideration for the business arrangements of this merger is in the form of exchangeable partnership units, and cash for the value agreed for the goodwill and working capital. It is estimated that a total of up to 160,000 IBI units may be issued pursuant to the exchangeable partnership units, subject to adjustment.
Richard Stevens, Senior principal and President of SGA stated that, "This Merger results from much thought on my part and that of my colleagues and planning with regards to the continuation of our practice and the provision of succession over time. We are pleased to have achieved this merger with the IBI Group Architects, within the IBI Group of Firms. There will be no change in our senior operating management of our practice and we will assure all of our clients and staff members of that commitment to the continued leadership provided by myself, Celia and Claudio, senior colleagues and other talented staff members." Celia and Claudio added that "we are confident that the synergy of the broader resources of manpower and technology available through the IBI Group of Firms will enable us to provide our clients with an even higher level of service relative to that which they have come to expect."
About the 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 71.7% interest 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 28.3% 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 46.3% interest.