Strategically expands U.S. footprint into Tennessee
TORONTO, January 2, 2020/CNW/ - Park Lawn Corporation (TSX: PLC) (“PLC”) is pleased to announce that it has entered into definitive agreements to acquire all of the outstanding stock and membership interests of Family Legacy, LLC (“Family Legacy”), a business with 13 locations operating in Nashville, Tennessee, as well as all of the outstanding membership interests in WG-TN, LLC (“Harpeth Hills”), a large combination business located in Nashville, Tennessee.
“Family Legacy and Harpeth Hills are preeminent funeral home and cemetery businesses which serve a large and attractive metropolitan market in middle Tennessee. The acquisition of Family Legacy and Harpeth Hills presents an exciting opportunity for Park Lawn to enter the Tennessee market by acquiring two businesses with long-standing reputations and leading market share,” stated Andrew Clark, Chairman and CEO of PLC.
“We are committed to the communities we serve and have always placed a premium on conducting our businesses with integrity and providing our customers with superior service in their time of need. We are excited to be partnering with an organization whose vision and mission aligns with that of Family Legacy’s and Harpeth Hills’ which will permit us to continue to provide our exceptional level of care. I value the opportunity to remain involved in the Family Legacy and Harpeth Hills businesses with the support of Park Lawn,” says William Gregory, owner of Family Legacy and Harpeth Hills.
Highlights of the transaction include:
• Expansion of PLC’s U.S. operations into the high-growth middle Tennessee metropolitan market by adding four (4) combination funeral home and cemetery properties, eight (8) stand-alone funeral homes and two (2) stand-alone cemeteries.
• Family Legacy and Harpeth Hills, on a combined basis, perform approximately 3,000 funerals and 1,000 interments per year and own approximately 240 acres of cemetery land (approximately 127 acres of which is undeveloped) in the Nashville, Tennessee area.
• In the first full year of operations following closing, PLC management expects Family Legacy and Harpeth Hills, on a combined basis, to generate approximately US$22.5 million of revenue and approximately US$5.8 million of EBITDA.
• The acquisition of Family Legacy and Harpeth Hills is in line with PLC’s communicated growth strategy and these transactions are expected to be completed in the first quarter of 2020 (subject to the satisfaction of any closing conditions and any required regulatory approvals).
• The transactions will be funded with proceeds from PLC’s existing credit facility and are expected to be immediately accretive to PLC’s adjusted net earnings per share and adjusted EBITDA per share.
• The purchase price of the transactions are within PLC’s publicly-disclosed EBITDA multiple range for transactions of this 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 has a North American wide platform with operations in five Canadian provinces and fourteen U.S. States.
Cautionary Statement Regarding Forward-Looking Information
This news release may contain forward-looking statements (within the meaning of applicablesecurities laws) relating to the business of PLC and the environment in which it operates. Forwardlooking 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 the expected timing of the closing of the acquisition, expected revenues, expected EBITDA, the expected purchase price multiple and the impact of the acquisition on PLC’s business. The forward-looking statements in this news release are based on certain assumptions, including that all conditions to closing will be satisfied, the acquired businesses will perform as expected, 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, and those regarding present and future business strategies, 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 risk that the acquisitions will not be completed, the acquired businesses will not perform as expected, PLC will not be able to successfully integrate the acquired businesses, the factors discussed under the heading “Risk Factors” in PLC’s Annual Information Form 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 forwardlooking statement, whether as a result of new information, future events or otherwise.
EBITDA, adjusted EBITDA and adjusted net earnings are not measures recognized under IFRS and do not have a standardized meaning prescribed by IFRS. Such measures are presented in this news release because PLC management believes that such measures are relevant in interpreting the effect of the acquisitions on PLC. Such measures, as computed by PLC, may differ from similar computations as reported by other similar organizations and, accordingly, may not be comparable to similar measures reported by such other organizations. Please see PLC’s most recent management's discussion and analysis for how the Company reconciles such measures to the nearest IFRS measure.
Chairman & Chief Executive Officer
Chief Financial Officer & Director