Park Lawn Increases its Presence in the Sioux City Metropolitan Area
- The acquisition expands Park Lawn's presence in the Sioux City market
- The transaction is expected to add approximately US$437,391 in Adjusted EBITDA annually
- None.
TORONTO, ON / ACCESSWIRE / August 30, 2023 / Park Lawn Corporation (TSX:PLC, PLC.U) ("Park Lawn" or "PLC") is pleased to announce that it has entered into a definitive agreement to acquire substantially all the assets of Christy-Smith Funeral Homes located in Sioux City, Iowa (collectively "Christy-Smith"). The Christy-Smith acquisition expands Park Lawn's footprint in the Sioux City, Iowa metropolitan market through the addition of two (2) stand-alone funeral homes and is anticipated to close in mid-October 2023 following the receipt of regulatory approval.
"We are excited for the opportunity to further expand our operating position in the Sioux City metropolitan area through the strategic acquisition of Christy-Smith," said J. Bradley Green, Chief Executive Officer of PLC. Mr. Green continued, "These businesses will complement our recent Meyer Brothers acquisition and further our operational synergies in the market. We look forward to welcoming the Christy-Smith team into the Park Lawn family."
Highlights of the transaction include:
- The addition of two (2) stand-alone funeral homes.
- The transaction represents 217 calls 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 of the transaction, the Christy-Smith acquisition is expected to add approximately US
$437,391 in Adjusted EBITDA annually.[1] - For the 12 months ended December 31, 2022, PLC had Adjusted EBITDA of US
$74,948,868 and net earnings of US$25,124,765. - The agreed upon purchase price multiple for the transaction is within PLC's publicly-stated targeted Adjusted EBITDA multiple range for its historical transactions.
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 nineteen U.S. states.
Cautionary Statement Regarding Forward-Looking Information
This news release contains forward-looking information (within the meaning of applicable securities laws) relating to the business of PLC and the environment in which it operates. Forward-looking statements in this news release 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 expectation that the Christy-Smith acquisition will add approximately US
Non‐IFRS Measures
Adjusted Net Earnings is not a measure recognized under IFRS and does not have a standardized meaning prescribed by IFRS. Such measure is presented in this news release because management of PLC believes that such measure is relevant in evaluating PLC's proposed acquisition of Christy-Smith. Such measure, 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 refer to pages 8, 9 and 21 of PLC's Management's Discussion and Analysis for the year ending December 31, 2022, which was filed on SEDAR+ on March 2, 2023, for how PLC reconciles Adjusted EBITDA to the nearest IFRS measure.
Contact Information
Daniel Millett
Chief Financial Officer
(416) 231-1462, ext. 221
[1] Adjusted EBITDA is a non-IFRS financial measure. Refer to the Non-IFRS Financial Measures section of this news release for more information on this non-IFRS financial measure.
SOURCE: Park Lawn Corporation
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