The leaf space of a multiplicative foliation

We show that if a smooth multiplicative subbundle $S\subseteq TG$ on a groupoid $G\rr P$ is involutive and satisfies completeness conditions, then its leaf space $G/S$ inherits a groupoid structure over the space of leaves of $TP\cap S$ in $P$. As an application, a special class of Dirac groupoids is shown to project by forward Dirac maps to Poisson groupoids.