Reaffirming its Commitment to Growth in North Carolina and Tennessee
TORONTO, October 14, 2021/CNW/ – Park Lawn Corporation (TSX: PLC) (“PLC”) is pleased to announce that it has entered into a definitive agreement to acquire substantially all of the assets of Pugh Funeral Homes and New Hope Memorial Gardens (collectively “Pugh”), a business consisting of five funeral homes and one cemetery located in central North Carolina. The transaction is anticipated to close prior to the end of the month following the receipt of regulatory approval.
PLC is also excited to announce that it has entered into a definitive agreement to acquire substantially all of the assets of Smith Funeral & Cremation Service, Life & Legacy Cremation Center and Smith Event Centers, as well as Grandview Cemetery and Cremation by Grandview (collectively the “Smith” businesses), comprised of one funeral home, one combination funeral home and cemetery property and five event centers in Maryville, Tennessee. This transaction is anticipated to close in mid-November following the satisfaction of regulatory requirements.
Finally, PLC is pleased to announce that it has completed the previously announced acquisition of another strategic group of businesses in the middle Tennessee market. Effective, September 1, 2021, PLC acquired substantially all of the assets of Williamson Memorial Funeral Home & Cremation Services and Spring Hill Memorial Park, Funeral Home & Cremation Services in Franklin and Spring Hill, Tennessee, respectively (collectively the “Williamson” businesses). These businesses consist of two combination funeral home and cemetery properties.
“Each of the Pugh, Smith and Williamson businesses represent premier funeral home and cemetery businesses with esteemed reputations in their respective North Carolina or Tennessee markets. The acquisition of these businesses continues to deepen PLC’s presence in rapidly expanding high-growth areas in the southern U.S. We are honored that these distinguished businesses and their long-time owners have chosen to become a part of the PLC family,” stated J. Bradley Green CEO of PLC.
Highlights of the Pugh, Smith and Williamson transactions include:
- The addition of six (6) stand-alone funeral homes; one (1) stand-alone cemetery; three (3) combination funeral home and cemetery properties; and five (5) event centers.
- The combined transactions represent 2,227 calls and 612 interments per year and have been or are expected to be financed with funds from PLC’s credit facility and available cash on hand.
- Following the closing and integration of the combined businesses from the three transactions, the Pugh, Smith and Williamson businesses are expected to add approximately US$6.2 million in EBITDA.
- The agreed upon purchase price multiples for each of the three transactions are within PLC’s publicly-stated targeted EBITDA multiple range for transactions of this size and nature.
About Park Lawn Corporation:
PLC provides goods and services associated with the disposition and memorialization of human remains. Products and services are sold on a pre-planned basis (pre-need) or at the time of a death (at-need). PLC and its subsidiaries own and operate businesses including cemeteries, crematoria, funeral homes, chapels, planning offices and a transfer service. PLC operates in three Canadian provinces and fifteen U.S. states.
Cautionary Statement Regarding Forward-Looking Information
This news release may contain forward-looking statements (within the meaning of applicable securities laws) relating to the business of PLC and the environment in which it operates. Forward-looking statements are identified by words such as “believe”, “anticipate”, “project”, “expect”, “intend”, “plan”, “will”, “may”, “estimate”, “pro-forma” and other similar expressions. These statements are based on PLC’s expectations, estimates, forecasts and projections and include, without limitation, statements regarding PLC’s intentions to pursue its stated growth objectives. The forward-looking statements in this news release are based on certain assumptions, including that PLC is able to obtain regulatory approval or satisfy regulatory requirements for the Pugh and Smith acquisitions, the Pugh and Smith acquisitions close in the anticipated time frames, the Williamson acquisition performs as expected, the Williamson acquisition complements PLC’s existing middle-Tennessee businesses, the Pugh and Smith acquisitions will perform as expected following closing, PLC will be able to implement business improvements and achieve cost savings, PLC will be able to retain key personnel, there will be no unexpected expenses occurring as a result of the acquisitions, the multiples remain at or below levels paid by PLC for previously announced acquisitions, the acquisition and financing markets remain accessible, capital can be obtained at reasonable costs and PLC’s current business lines operate and obtain synergies as expected, as well as those regarding present and future business strategies, organic growth initiatives, the environment in which PLC will operate in the future, expected revenues, expansion plans and PLC’s ability to achieve its goals. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed under the heading “Risk Factors” in PLC’s Annual Information Form and most recent Management’s Discussion and Analysis available at www.sedar.com. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, PLC assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Chief Financial Officer
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