IBI Income Fund Announces the Settling of Business Arrangements for the Acquisition of the Giffels Professional Engineering Practice from Ingenium Group Inc.
TORONTO, June 26 2008 - IBI Income Fund (the "Fund") (TSX:IBG.UN) announced today that business and legal arrangements have been concluded to provide for the closing in the near future of the acquisition of the Giffels Professional Engineering practice from Ingenium Group Inc.
Giffels is a Legacy Firm, originally established in Detroit, USA in 1925. Giffels Professional Engineering, Ontario, Canada was established in 1949. The US and Canadian Giffels operations separated and were reunited in 2005 with the acquisition of Giffels Inc. USA. The combined Giffels Professional Engineering (GPE); Giffels Associates Limited Canada and Dubai; Giffels, Inc., USA; and Giffels International; collectively carry on professional engineering consulting services and related architectural services for the pre-design, design, construction and post-construction stages of projects broadly within industrial and infrastructure fields, and more specifically involving structural, mechanical and electrical building services, (SME) Engineering; architecture in direct support of SME Engineering Services: civil engineering; land/site development engineering; process and industrial engineering; environmental engineering; and transportation engineering in the following market segments;
- transit, roads and highways;
- aviation systems;
- municipal services and utilities;
- power generation and distribution;
- manufacturing and warehousing;
- logistics and materials handling; and
- automotive facilities.
The total staff complement of GPE is approximately 375 with 225 Giffels Associates Limited in Canada, 10 of Giffels Associates Limited in Dubai and 140 Giffels Inc. in the USA of whom 124 are located in Southfield, Michigan, (the Detroit Metropolitan Area), and 16 in Raleigh, North Carolina. Phil Beinhaker, Chairman Director and CEO of IBI Group noted that, "the integration of the outstanding ability of GPE within the IBI Group is strategic in relation to three basic objectives:
- the integration of engineering design skills of GPE that complement the policy, research, planning, Architectural and operational analysis skills of the IBI Group in transportation networks and facilities and major infrastructure, thus broadening the ability of both groups to fulfill client needs providing comprehensive services for major projects;
- the overall growth in professional staff, and market functional activities and projects, increasing stability of fee volume and employment for staff; (the approximate 375 staff members of GPE added to the existing 1,825 staff members of IBI Group increases the total group to 2,200;
- The strengthening of IBI US Operations: the integration of the 140 members of GPE in the USA increases the total IBI complement to 540 and establishes for the IBI Group of Firms a base of operations in the strategic market area of the Great Lakes urban region, and adds to the Atlantic seaboard network of IBI offices and skills."
Phil Beinhaker continued, "The business arrangements that we have settled provide for all five of the senior executives of Giffels Professional Engineering along with the senior managers and all staff to continue with the practice integrated within the IBI Group of Firms. Accordingly, this merger will be of utmost benefit to the clientele of both firms in enhancing the range and depth of professional services offered, to the professional staff of GPE in facilitating the growth of their activity with the IBI international network of offices, clientele, in their respective areas of practice and to benefit with their areas of work enhanced by the contribution of the complementary professional areas of existing IBI members."
Mr. Victor Smith, President and CEO, The Ingenium Group, stated, "GPE Units will have greater opportunity for them to thrive as their activities are more aligned with IBI's strategic focus while enabling The Ingenium Group to acquire and/or invest in businesses and assets that are more closely aligned to Ingenium's new streamlined strategies. In addition, The Ingenium Group and IBI intend to continue to share work through Giffels Professional Engineers based on the mutual respect for each others' capabilities."
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 68% interest in 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 32% of IBI Group is owned by IBI Group Management Partnership.
For further information, please contact:
Allan J. Kamerman
IBI Income Fund
230 Richmond Street West
Toronto, ON M5V 1V6
Tel: 416-596-1930
Fax: 416-596-8024
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