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:
-
- Four funeral home locations (3 of which are on-sites)
- Nine cemetery locations
- One stand-alone crematory
- 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