Morneau Shepell enters agreement to acquire the U.S. health and welfare benefits administration business of Ceridian
TORONTO, July 22, 2015 /CNW/ - Morneau Shepell, (the "Company" or "Morneau Shepell") (TSX: MSI), a leading North American provider of human resources consulting and technology, today announced that it has entered into an agreement to acquire the U.S. health and welfare benefits administration business of Ceridian. The transaction is expected to close on July 31, 2015.
More than 100 highly experienced benefits administration professionals from Ceridian will join Morneau Shepell. Sixty-five Ceridian clients, ranging from small businesses with several hundred employees to businesses with very large employee bases, will see their services continued uninterrupted under the Morneau Shepell banner.
"This transaction supports Morneau Shepell's' ongoing commitment to invest in and grow its business in the U.S., " said René Beaudoin, Executive Vice-President, U.S. Region, and Chief Technology Officer, Morneau Shepell. "While stand-alone health and welfare administration is no longer a strategic focus for Ceridian, it is one of Morneau Shepell's core businesses. This deal will enhance Morneau Shepell's ability to compete against large U.S. competitors and to service organizations of all sizes across North America."
Beaudoin added, "We are enthusiastic about welcoming more than 100 new talented employees to the Morneau Shepell family in the U.S., and look forward to serving our new customers. Not only will the addition of these highly-capable Ceridian team members enhance Morneau Shepell's service offering and garner attention for our brand, but it will also mean our employees are part of an increasingly competitive provider of health and benefits plan administration and retirement solutions."
Ceridian's highly experienced benefits administration professionals will continue to deliver the high quality of service that clients are accustomed to under the Morneau Shepell banner. Clients will continue to work with the same system and support staff who know them, their business and their needs. Existing administrative processes including files to/from payroll and to carriers/vendors will remain in place.
This acquisition represents less than two per cent of Morneau Shepell's revenue and is not expected to have a material impact on the Company's financial performance in 2015.
Morneau Shepell is a North American leader in health and benefits administration consulting and services. In June of this year, Morneau Shepell was named one of the top five defined benefit pension plan providers in the U.S. by PLANSPONSOR magazine. In 2012, Morneau Shepell acquired U.S.-based SBC Systems to enhance its Benefits Administration platform (the Ariel™ system).
About Morneau Shepell Inc.
Morneau Shepell is the largest company in Canada offering human resources consulting and technology. The Company is the leading provider of employee and family assistance programs, as well as the largest administrator of retirement 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 approximately 20,000 clients, ranging from small businesses to some of the largest corporations and associations in North America. With almost 4,000 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.
SOURCE Morneau Shepell - Corporate