Deal increases PLC's operating capacity in GTA and Ontario market
TORONTO, May 4, 2017 /CNW/ - Today, Park Lawn Corporation (TSX: PLC) ("PLC") announced that it has completed the purchase of TCS Funeral Services ("TCS") in Toronto.
"We are excited to add TCS to the Park Lawn group of companies. TCS has a long track record of providing support services to the funeral industry, one that we are excited to build upon. We believe there are opportunities for synergies between TCS and our existing businesses and expect that TCS will be an important pillar as we grow our business further," said Andrew Clark, Chairman & CEO of PLC.
Highlights of the deal include:
- TCS Funeral Services is a business-to-business service provider in the funeral industry, providing outsourced embalming, transfer and other services to funeral homes, cemeteries, municipalities and hospitals across Ontario.
- Total purchase price of $3,660,000 paid with cash raised from PLC's November 2016 bought deal public offering.
- The purchase price multiple is within PLC's publicly stated targeted EBITDA multiple range.
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 34 cemeteries in Ontario and Michigan, 17 crematoria and 29 funeral homes, chapels and planning offices in Quebec, Ontario, Manitoba, Saskatchewan, British Columbia.
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 and the opportunities for synergies. 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]