Morneau Shepell acquires Groupe AST from ADP Canada
/NOT FOR DISTRIBUTION TO US NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE US/
Acquisition increases company client base and market share, making Morneau Shepell the leader in workers' compensation services both nationally and in Québec
TORONTO, March 3, 2014 /CNW/ - Morneau Shepell Inc. (the "Company" or "Morneau Shepell") (TSX: MSI) today announced the acquisition from ADP Canada Co., of Groupe AST, the largest workers' compensation provider in Québec.
"With this acquisition, we further expand our market leadership position as the largest Canadian provider of both workers' compensation services and broader, integrated absence management solutions," said Zahid Salman, Executive Vice President of Morneau Shepell responsible for the Ontario and Western Canada Regions, as well as the Organizational Health Solutions line of business. "It is also in line with our stated strategy to grow our business profitably through acquisitions that complement our existing service offerings or expand our market presence."
"Through this acquisition, Morneau Shepell gains more than 150 employees in Montréal and Québec City, more than 12,000 client companies, 18 prevention mutual groups, and annual revenue of more than $20 million at comparable margins," said Julien Ponce, Executive Vice-President for Morneau Shepell responsible for the Québec and Atlantic Canada Regions. "We become the clear leader in the prevention mutual group business and are in an even better position to meet the demand for workers' compensation services across the country."
"Quebec remains a key market for our integrated human capital management services," said Greg Secord, President of the Employer Services Division of ADP Canada. "This agreement allows us to focus on our core service offering to employers, and we are confident the Groupe AST clients will continue to be well-served by Morneau Shepell. We thank the Groupe AST team for their contributions, and we wish them luck in the future."
Morneau Shepell's Organizational Health Solutions line of business consists of attendance and disability management, occupational health services, and workers' compensation services. Groupe AST provides a variety of workers' compensation services including risk assessment, safety training, claims management, independent medical advice, and safety communications, and also manages prevention mutual groups.
The purchase price in the amount of $32 million for Groupe AST will be financed through Morneau Shepell's existing credit facility and two vendor take-back notes in the amount of $5 million.
The purchase will be discussed further during Morneau Shepell's 2013 fourth quarter and year end conference call on Wednesday, March 5, 2014, at 1:00 p.m. ET, with Bill Morneau, Executive Chairman, Alan Torrie, President and CEO, and Scott Milligan, Chief Financial Officer.
The conference call is open to all those wishing to attend, with a Question and Answer period to follow the presentation. In order to participate in the live conference call, please call 416.340.2217 (participant code 8927592) in the Toronto area, or 1.866.696.5910 (participant code 8927592) throughout the rest of Canada. A replay of the call will be available via the Morneau Shepell Web site at morneaushepell.com.
About Morneau Shepell Inc.
Morneau Shepell is the largest company in Canada offering human resources consulting and outsourcing services. The Company is the leading provider of Employee and Family Assistance Programs, the largest administrator of pension and benefits plans and the largest provider of integrated absence management solutions in Canada. Through health and productivity, administrative, and retirement solutions, Morneau Shepell helps clients reduce costs, increase employee productivity, and improve their competitive position. Established in 1966, Morneau Shepell serves more than 8,000 clients, ranging from small businesses to some of the largest corporations and associations in North America. With approximately 3,300 employees in offices across North America, Morneau Shepell provides services to organizations across Canada, in the United States, and around the globe. Morneau Shepell is a publicly-traded company on the Toronto Stock Exchange (TSX: MSI). For more information, visit morneaushepell.com.
About ADP Canada
ADP Canada Co. is a leading provider of human resources, payroll and benefits solutions that power organizations to drive business success. For more information about ADP Canada or to contact a local ADP Canada sales office, call us at 1 866-228-9675, visit us at adp.ca or follow us on Twitter @ADP_CDA.
With more than $11 billion in revenues and more than 60 years of experience, ADP® (NASDAQ: ADP) serves approximately 620,000 clients in more than 125 countries. As one of the world's largest providers of business outsourcing and Human Capital Management solutions, ADP offers a wide range of human resource, payroll, talent management, tax and benefits administration solutions from a single source, and helps clients comply with regulatory and legislative changes, such as the Affordable Care Act (ACA). ADP's easy-to-use solutions for employers provide superior value to companies of all types and sizes. ADP is also a leading provider of integrated computing solutions to auto, truck, motorcycle, marine, recreational vehicle, and heavy equipment dealers throughout the world. For more information about ADP, visit the company's Web site at www.adp.com.
This news release contains "forward-looking statements" within the meaning of applicable securities laws, such as statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Use of words such as "may", "will", "expect", "believe", or other words of similar effect may indicate a "forward-looking" statement. These statements are not guarantees of future performance and are subject to numerous risks and uncertainties, including those described in the Company's publicly filed documents (available on SEDAR at www.sedar.com) and in the firm's MD&A under the heading "Risks and Uncertainties". Those risks and uncertainties include ability to maintain profitability and manage growth, reliance on information systems and technology, reputational risk, dependence on key clients, reliance on key professionals and economic conditions. Many of these risks and uncertainties can affect the firm's actual results and could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking statement made by the Company or on the firm's behalf. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. 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, the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Additionally, the Company undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of the Company, its financial or operating results or its securities.