TORONTO, Oct. 3, 2017 /CNW/ - Park Lawn Corporation (TSX: PLC) ("PLC" or the "Company") is pleased to announce that, effective September 30, 2017, it has completed the acquisition of the final two properties in connection with the acquisition of Saber Management LLC, which was originally announced on June 7, 2017. The acquisition of the remaining properties, which include a cemetery and funeral home in Gurnee, Illinois, completes the acquisition of 23 properties located in Kentucky, Illinois and Texas.
As a result of the completion of the acquisition, approximately US$3 million of cash consideration was paid to the sellers of the properties. The aggregate purchase price for the 23 acquired properties (the "Acquisition"), including the Illinois assets, was approximately US$48.75 million in cash, subject to customary working capital adjustments, plus additional consideration of up to US$9.75 million in PLC common shares ("Common Shares"). The additional consideration will be issued over a period of three years if certain financial hurdles are met. Further details regarding the Acquisition are set out in the Company's news release of June 7, 2017.
PLC is also pleased to announce the purchase of approximately 15 acres of cemetery-zoned land immediately adjacent to its Forest Lawn Cemetery in Houston, Texas. The purchase price was US$1.98 million which will substantially increase the footprint of the Company's Houston property, and provide opportunity for future organic growth initiatives.
The transactions announced today were funded using the proceeds from the Company's bought deal offering of Common Shares, which closed on June 27, 2017
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 88 businesses including cemeteries, crematoria, funeral homes, chapels, planning offices and a transfer service. PLC operates in Ontario, Quebec, Manitoba, Saskatchewan, British Columbia, Michigan, Kentucky, Texas & Illinois.
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 the Company 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 the Company's expectations, estimates, forecasts and projections and include, without limitation, statements regarding the opportunity for future organic growth initiatives in Houston, Texas. The forward-looking statements in this news release are based on certain assumptions, and they 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 the Company's annual information form 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, the Company 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
For further information: Andrew Clark, Chairman & Chief Executive Officer, (416) 231-1462; Joseph Leeder, Chief Financial Officer, (416) 231-1462; Suzanne Cowan, VP, Business Development & Corporate Affairs, (416) 231-1462, [email protected]