PLC Deepens Its Presence in Central Mississippi
Park Lawn Corporation has announced its acquisition of Chancellor Funeral Home and Garden of Memories, enhancing its footprint in the Jackson, Mississippi area. The deal involves one stand-alone funeral home and a combination funeral home and cemetery, contributing approximately US$1.25 million in EBITDA annually. The acquisition, financed through its credit facility and available cash, is expected to close in April 2022 following regulatory approval. This strategic move aligns with PLC's growth objectives and strengthens its presence in the U.S. market.
- Acquisition expected to add approximately US$1.25 million in EBITDA annually.
- Transaction aligns with PLC's publicly-stated EBITDA multiple targets.
- Strengthens PLC's presence in the Jackson, Mississippi area.
- None.
TORONTO, ON / ACCESSWIRE / March 30, 2022 / Park Lawn Corporation (TSX:PLC, PLC.U) ("PLC") is pleased to announce that it has entered into a definitive agreement to acquire substantially all of the assets of Chancellor Funeral Home and Garden of Memories (collectively "Chancellor"), a business consisting of one stand-alone funeral home and one combination funeral home and cemetery property located in Byram and Florence, Mississippi, respectively. The transaction is anticipated to close in April 2022 following the receipt of regulatory approval.
"The Chancellor businesses are pillars of their communities and their addition to our portfolio solidifies Park Lawn's presence in and around the Jackson, Mississippi area. We are honored that the Chancellor's long-time owners, Bill and Sandra, have chosen to become a part of the PLC family," stated J. Bradley Green, Chief Executive Officer of PLC.
Highlights of the transaction include:
- The addition of one (1) stand-alone funeral home and one (1) combination funeral home and cemetery property.
- The transaction represents 383 calls and 45 interments per year and is expected to be financed with funds from PLC's credit facility and available cash on hand.
- Following the closing and integration, the Chancellor acquisition is expected to add approximately US
$1.25 million in EBITDA. - The agreed upon purchase price multiple for the transaction is 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 sixteen 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 acquisition, the acquisition closes in the anticipated time frame, the acquisition 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.
Contact Information
Daniel Millett
Chief Financial Officer
(416) 231-1462, ext. 221
SOURCE: Park Lawn Corporation
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