Acquisition expands PLC cemetery and funeral home operations in the Carolinas
TORONTO, Nov 1, 2018 /CNW/ - Park Lawn Corporation (TSX: PLC) ("PLC" or the "Company") is pleased to announce that it has completed the previously announced acquisition of all the outstanding membership interests of Citadel Management LLC ("Citadel") for a purchase price of approximately US$12.9 million in cash, subject to customary working capital adjustments (the "Acquisition").
"We are pleased to be expanding our operations in North Carolina and entering the South Carolina market with the purchase of Citadel," stated Andrew Clark, Chairman and CEO of PLC. "This acquisition fits well with our existing portfolio and provides an opportunity for growth in these two new markets."
"We look forward to working with Park Lawn and see them as the right partner to continue growing our business throughout our communities," stated William W. Gaffney, current President of Citadel. "The team at Park Lawn has established a strong portfolio and management team that will allow us to maximize the opportunity for growth in the long term."
Highlights of the Acquisition
- Adds 29 cemeteries and 8 funeral homes (including 1 on-site) in North and South Carolina into PLC's portfolio, while building off our previously announced acquisition of Wells Funeral Homes and Cremation Services in North Carolina.
- Following further due diligence which reduced the expected EBITDA of Citadel in the first full year of operations following closing from US$2.5 million to US$2.4 million, PLC negotiated a purchase price reduction of US$500,000. If Citadel achieves its expected results, the purchase price of US$12.9 million will reflect a multiple of approximately 5.4x EBITDA.
- Upon closing, PLC will be investing an additional US$1.7 million for new mausoleum inventory currently under construction within the Citadel portfolio. This investment is consistent with our strategic objective of using acquisitions as an opportunity to drive organic growth.
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 has a North American wide platform with operations in five Canadian provinces and twelve US 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 Citadel's expected EBITDA, the expected purchase price multiple and the impact of the acquisition on PLC's business. The forward-looking statements in this news release are based on certain assumptions, including those regarding present and future business strategies, the environment in which the PLC will operate in the future, 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 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.
EBITDA 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 the Company believes that such measures are relevant in interpreting the effect of the Acquisition on the Company. Such measure, as computed by the Company, 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 see the Company's most recent management's discussion and analysis for how the Company reconciles its EBITDA to the nearest IFRS measure.
SOURCE Park Lawn Corporation
For further information: Andrew Clark, Chairman & Chief Executive Officer, (416) 231-1462; Joseph Leeder, Chief Financial Officer & Director, (416) 231-1462; Suzanne Cowan, VP, Business Development & Corporate Affairs, firstname.lastname@example.org, (416) 231- 1462