Reaffirming its Commitment to Growth in
North Carolina and Tennessee
TORONTO, Oct. 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.
SOURCE Park Lawn Corporation