CLAIRVEST ANNOUNCES COMPLETION OF SALE OF SHEPELL•FGI TO MORNEAU SOBECO
Toronto, Ontario (June 2, 2008) – Clairvest Group Inc. (TSX: CVG) today announced the completion of previously announced agreements to sell substantially all of the assets of its investee company Shepell•fgi to Morneau Sobeco Income Fund (“Morneau Sobeco”, TSX: MSI.UN).
Clairvest and Clairvest Equity Partners Limited Partnership (“CEP”), a partnership managed by Clairvest, jointly invested $16.0 million in Shepell•fgi in October 2005, and a further $10.2 million in September 2006. Clairvest and CEP’s contributions to the investment were 25% and 75% respectively.
Clairvest and CEP received gross sale proceeds of $104.5 million at closing, and promissory notes secured by Morneau Sobeco for an additional $61.1 million, payable over the next 24 months. The payment of the promissory notes is subject to satisfaction of certain items in the purchase documentation, and up to $32.7 million of the promissory notes may be received in the form of units of Morneau Sobeco at the option of the acquirer.