WINNIPEG, Manitoba, May 23, 2018 (GLOBE NEWSWIRE) -- People Corporation (TSX-V:PEO) (the “Company”) announced today the completion of the acquisition of Lane Quinn Benefit Consultants Ltd. (“Lane Quinn”), one of the leading group benefits consulting firms in the Alberta market (the “Transaction”).
Founded in 2001, Lane Quinn is based in Calgary, Alberta, and has over 500 clients in Alberta and British Columbia. With a strong focus on value-added consulting advice, supported by first-rate client service, Lane Quinn has demonstrated a strong track record of growth, and developed an exceptional reputation in the market. Lane Quinn’s owners, Jay Quinn and Blaine McGillivray, as well as its management team and staff, bring significant experience in the group benefits market, and will continue to grow Lane Quinn as part of the People Corporation group of companies.
Laurie Goldberg, Chairman and CEO of People Corporation, commented, “We are very excited to announce the acquisition of Lane Quinn, which is among the leading firms in the Alberta market, and an outstanding complement to our existing Hamilton+Partners operations.” Mr. Goldberg continued, “We are very pleased to welcome Jay, Blaine and the rest of the Lane Quinn team into the People Corporation family. This transaction enhances our position in the region, as we look to continue to grow the People Corporation business in Western Canada.”
Jay Quinn added, “I am very excited that Lane Quinn is joining with People Corporation. Our industry continues to evolve, and clients’ expectations continue to increase with respect to their employee benefit programs. Partnering with People Corporation, with its national footprint and significant scale, creates an opportunity to enhance the solutions we provide to our client base with access to a broader suite of products and services. Also, after getting to know People Corporation over many years, I see a very strong fit for our clients, suppliers, employees and all other stakeholders.”
Highlights of the Transaction include:
- Lane Quinn is among the leaders in the Alberta market, with a large and diversified client base, and a track record of growth.
- Lane Quinn’s legacy of extraordinary service and client-focused solutions will continue as part of People Corporation, with opportunities for future growth through accessing the broad and deep portfolio of products and solutions of a large, national platform.
- The Transaction significantly enhances the Company’s market position in the Alberta market by adding a business that is highly complementary to the Company’s existing operations in the region.
People Corporation has agreed to purchase the shares of Lane Quinn and related entities for $20 million, subject to post-closing adjustments. Of the total purchase price, $14 million will be paid in cash on closing of the Transaction, $1.75 million will be satisfied through the issuance of 235,001 shares of People Corporation to the Vendors, and the remaining $4.25 million will be paid by way of deferred payments following the first and second anniversaries of the closing. The cash portion of the purchase price will be funded through drawing on the Acquisition Revolver component of the Company’s existing credit facilities with its senior lenders. The deferred payments are subject to potential adjustment related to the financial performance of the business over that period. In addition, the Vendors may be eligible to receive a potential additional payment after three years following closing of the Transaction should the Lane Quinn business exceed certain financial performance thresholds.
Mr. Goldberg concluded, “This acquisition is strategically significant for our group benefits consulting business overall, and particularly given our growth aspirations in Western Canada. Partnering with firms that are a strong cultural fit, and that share the same relentless pursuit of client-focused solutions, will continue to be a focus for our firm. With strong access to capital, and a reputation for working with partners to achieve synergistic outcomes, we are well-positioned for ongoing growth.”
About People Corporation
People Corporation is a national provider of group benefits, group retirement and human resource services. The Company has offices across Canada; each led by a team of experts and backed by the resources of a national company that is traded on the TSX-V. The Company's industry experts provide uniquely valuable insight while customizing an innovative suite of services to the specific needs of its clients. Whatever your sector, whatever your scale, putting People Corporation's expertise and proven track record to work will make a difference to your people and your bottom line. Further information is available at www.peoplecorporation.com.
Forward-Looking Information
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”, "intends", "likely", 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). Those risks and uncertainties include the ability to maintain profitability and manage organic or acquisition growth, reliance on information systems and technology, reputation risk, dependence on key clients, reliance on key professionals and general economic conditions. Many of these risks and uncertainties can affect the Company's actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statement made by the Company or on its 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.
Investor Relations Inquiries:
Contact - Dennis Stewner, CPA, CA
CFO and COO - People Corporation
(204) 940-3988
dennis.stewner@peoplecorporation.com
www.peoplecorporation.com
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