TORONTO, Jan. 19, 2017 /CNW/ - Today, Park Lawn Corporation (TSX: PLC) ("PLC") announced the purchase of four funeral home operations in Ontario, as part of a series of acquisitions over the last 12 months as PLC continues to expand its portfolio of assets in Canada and the US. The deal will add four funeral homes in Barrie, Simcoe County & the District of Muskoka.
"The purchase of these funeral homes will expand our presence in the Ontario market," stated Andrew Clark, Chairman and CEO of PLC. "Their proximity to our Mundell Funeral Home in Orillia and our crematoria in the GTA makes these businesses a logical fit and we expect them to be immediately accretive to our bottom line."
Highlights of the transaction include:
- Reynolds Funeral Home 'Turner Chapel' in Bracebridge & Cavill-Turner Funeral Home in Gravenhurst, owned by Bruce and Cathie Turner.
- Jennett Funeral and Cremation Centre Ltd in Barrie & Innisfil Funeral Home Limited in Innisfil owned by Simon Slessor and Stuart Clark.
- Total purchase price of $ 6,753,000, paid for with cash raised from PLC's November 2016 bought deal public offering.
- The purchase multiple is within PLC's publicly-stated targeted EBITDA multiple range.
"We believe in working with strong and professional local management and staff. Our partnerships in these communities will further enhance the positive and caring experience provided to the families we serve," added Mr. Clark.
Park Lawn Corporation 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 34 cemeteries in Ontario and Michigan, 16 crematoria and 22 funeral homes, chapels and planning offices in Quebec, Ontario, Manitoba and Saskatchewan.
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 expected impact of the acquisition on PLC's business. 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 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.
SOURCE Park Lawn Corporation
For further information: Andrew Clark, 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]