Morneau Shepell Inc. (TSX:MSI) ("Morneau Shepell" or the "Company"), the leading provider of technology-enabled HR services that deliver an integrated approach to well-being, today announced that it has closed the previously announced acquisition of the stand-alone, large market, health and defined benefit ("DB") pension plan administration business of Mercer in the United States. Of the total purchase price of approximately US$57 million, approximately US$40 million was paid in cash at closing through use of the Company's revolving credit facilities. The balance will be paid over the next year, subject to certain post-closing adjustments.

"We are pleased to welcome the very talented employees joining us with this acquisition and our new clients that we look forward to supporting and bringing exceptional service to their employees," said Stephen Liptrap, President and Chief Executive Officer, Morneau Shepell. "This acquisition is in line with our strategic plan of which U.S. expansion is a critical component."

The Company anticipates that this acquisition will represent approximately 12 per cent of Morneau Shepell's annualized revenue. In addition, the Company expects Adjusted EBITDA margins will be slightly diluted in the short term.

With this transaction, Morneau Shepell will add approximately two million participants, further solidifying Morneau Shepell as a leading provider of administration of health and DB pension plans across the continent.

About Morneau Shepell

Morneau Shepell is the leading provider of technology-enabled HR services that deliver an integrated approach to well-being through our cloud-based platform. Our focus is providing everything our clients need to support the mental, physical, social and financial well-being of their people. By improving lives, we improve business. Our approach spans services in employee and family assistance, health and wellness, recognition, pension and benefits administration, retirement and benefits consulting, actuarial and investment services. Morneau Shepell employs almost 5,000 employees who work with some 24,000 client organizations that use our services in 162 countries. Morneau Shepell is a publicly traded company on the Toronto Stock Exchange (TSX: MSI). For more information, visit morneaushepell.com.