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Acquisition of 4 funeral homes (3 on-sites), 9 cemeteries and 1 crematorium strengthens Park Lawn's operational footprint in South Carolina
TORONTO, Nov. 2, 2020 /CNW/ - Park Lawn Corporation (TSX: PLC) ("PLC" or "Park Lawn") is pleased to announce that it has acquired all of the outstanding stock of W.R. Floyd Corp. and Floyd Properties, Inc. and a majority of the assets of W.R. Floyd Services, Inc. GRAS, LLC, Piedmont Crematory, Inc. and Floyd's Pet Cremation, LLC (collectively "J.F. Floyd"), a group of businesses located in Spartanburg and Charleston, South Carolina.
"J.F. Floyd is a well-established business that aligns with Park Lawn's growth strategy. The addition of these businesses strengthens PLC's operational footprint in South Carolina and provides a platform from which it can continue to expand into the southeast region of the U.S. We are excited to welcome the Floyd family, along with the rest of the J.F. Floyd team, into the Park Lawn family," stated J. Bradley Green, Chief Executive Officer of PLC.
"My family has been dedicated to serving the families of Spartanburg County for nearly 135 years. We are honored that our legacy will be preserved through Park Lawn's commitment to the same high level of compassionate and professional care for the communities we serve," said Russel Floyd.
Highlights of the transaction include:
PLC's significant expansion in South Carolina consisting of:
The J.F. Floyd businesses perform approximately 650 calls and over 800 interments per year;
Once fully integrated, Park Lawn expects the J.F. Floyd businesses to contribute approximately $2.37M USD in EBITDA;
The purchase of J.F. Floyd will be funded with at least 75% from cash on hand and the remainder from Park Lawn's existing revolving credit facility; and
The agreed upon purchase price multiple is within PLC's publicly-stated targeted 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 operates in five 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 the Company's intentions to pursue its stated growth objectives. The forward-looking statements in this news release are based on certain assumptions, including that recent acquisitions perform as expected, PLC will be able to implement business improvements and achieve costs savings, PLC will be able to retain key personnel, there will be no unexpected expenses occurring as a result of the acquisitions, multiples remain at or below levels paid by PLC for previously announced acquisitions, the CAD to USD exchange rate remains consistent, 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, the environment in which the PLC will operate in the future, the anticipated adjustments to operations in the COVID-19 pandemic, expected revenues, expansion plans and the 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
View original content: http://www.newswire.ca/en/releases/archive/November2020/02/c4362.html