Clairvest To Sell Signature Security To Australian Private Equity Firm
Toronto, Ontario (January 11, 2006) – Clairvest Group Inc. (TSX:CVG) today announced that it has entered into agreements to sell its interest in Signature Security Group Holdings Pty Limited (“Signature”) as part of a sale of 100% of Signature to Allco Equity Partners, a leading Australian private equity firm. Completion of the sale is expected to take place by the end of the month.
Signature, based in Sydney, Australia, has been a portfolio company of Clairvest since 1997 and has grown to become one of the top three security installation and monitoring companies in Australia and New Zealand.
After careful consideration and a strategic review of the investment, Clairvest believes it has maximized the value of Signature at this time and that future value growth requires time and resources beyond its desired investment horizon.
“We are pleased with the strong performance of the company over the past five years since Howard Watson assumed its leadership as CEO,” said Jeff Parr, Co-CEO of Clairvest. “Given the tenure of the shareholder group, we believe future value growth is best achieved under new ownership, with additional capital resources for growth.”
“We wish our partner and friend Howard Watson continued success with Signature,” added Mr. Parr.
Clairvest expects to realize approximately its carrying value of $29.7 million for the investment. (All figures are in Canadian dollars unless otherwise stated).
Clairvest is a Canadian merchant bank that invests its own capital, and that of third parties through Clairvest Equity Partners Limited Partnership, in companies that have the potential to generate superior returns. In addition to providing financing, Clairvest contributes strategic expertise and execution ability to support the growth and development of its investee partners. Clairvest realizes value through investment returns and the eventual disposition of its investments.
For further information, please contact:
Lana Reiken Chief Financial Officer and Corporate Secretary
Clairvest Group Inc.
Tel: (416) 925-9270
Fax: (416) 925-5753
www.clairvest.com
This news release may contain forward-looking statements with respect to Clairvest Group Inc., its subsidiaries and their investments. These statements are based on current expectations and are subject to known and unknown risks, uncertainties and other factors such as the possibility of the transaction not concluding, foreign exchange risks and actual sale proceeds received which may cause the actual results, performance or achievements of Clairvest, its subsidiaries and their investments to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.