TORONTO, ON / ACCESSWIRE / August 3, 2022 / Park Lawn Corporation (TSX:PLC, PLC.U) ("Park Lawn" or "PLC") is pleased to announce that it has entered into a definitive agreement to acquire substantially all of the assets of Shackelford Corporation ("Shackelford"), a group of businesses consisting of eight stand-alone funeral homes, two stand-alone cemeteries and one on-site funeral home and cemetery located in and around the Savannah, Tennessee area. The transaction is anticipated to close in early September 2022 following the receipt of regulatory approval.
"Shackelford is a strategic addition to Park Lawn's portfolio as it expands across Tennessee into the western half of the state," said J. Bradley Green, CEO of PLC. Mr. Green continued, "Five generations of the Shackelford family have dedicated themselves to serving their communities for over 90 years. And, throughout that time, they have established and maintained a reputation of quality, sincerity and trust with the families they serve. We are honored to welcome the Shackelfords and their team into the Park Lawn family and look forward to continuing their dedication to excellent service."
Highlights of the transaction include:
- The addition of eight (8) stand-alone funeral homes; two (2) stand-alone cemeteries and one (1) on-site funeral home and cemetery.
- The transaction represents 1,577 calls per year and 152 interments and is expected to be financed with funds from PLC's credit facility and available cash on hand.
- Following the closing and integration, the Shackelford acquisition is expected to add approximately US$3,400,000 in Adjusted EBITDA annually.1
- For the 12 months ended December 31, 2021, PLC had Adjusted EBITDA of US$76,284,577 and net earnings of US$27,812,866.
- The agreed upon purchase price multiple for the transaction is slightly greater than PLC's publicly-stated targeted Adjusted EBITDA multiple range for its historical transactions.
Westminster Funeral, Visitation and Reception Centre
Park Lawn is also happy to announce the completion and opening of its Westminster Funeral, Visitation and Reception Centre located at Westminster Cemetery in Toronto, Ontario. "The opening of this new facility aligns with our organic growth strategy and allows the families we serve to receive a full suite of services in one convenient location ranging from not only cemetery services and merchandise, but now a state-of-the-art facility in which to honor, remember and celebrate their loved ones," said Jay D. Dodds, President and Chief Operating Officer.
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 three Canadian provinces and sixteen U.S. states.
Cautionary Statement Regarding Forward-Looking Information
This news release contains forward-looking information (within the meaning of applicable securities laws) relating to the business of PLC and the environment in which it operates. Forward-looking statements in this news release 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 PLC's expectation that the Shackelford acquisition will add approximately US$3,400,000 in Adjusted EBITDA; and the expected time of closing of the Shackelford acquisition. The forward-looking statements in this news release are based on certain assumptions, including that PLC is able to obtain regulatory approval or satisfy regulatory requirements for the Shackelford acquisition, the acquisition closes in the anticipated time frame, the acquisition will perform as expected following closing, PLC will be able to implement business improvements and achieve cost savings, PLC will be able to retain key personnel, there will be no unexpected expenses occurring as a result of the acquisition, the purchase price multiples for future acquisitions remain at or below levels paid by PLC for previously announced acquisitions, the acquisition and financing markets remain accessible, the Westminster Funeral, Visitation and Reception Centre aligns with PLC's growth strategy and will result in increased demand and generation of revenue at Westminster, 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, organic growth initiatives, the environment in which PLC will operate in the future, expected revenues, expansion plans and 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 most recent Annual Information Form and 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.
Non-IFRS Measures
Adjusted Net Earnings 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 PLC believes that such measure is relevant in evaluating PLC's proposed acquisition of Shackelford. Such measure, as computed by PLC, 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 refer to pages 8 and 19 of PLC's Management's Discussion and Analysis for the year ending December 31, 2021, which was filed on SEDAR on March 3, 2022, for how PLC reconciles Adjusted EBITDA to the nearest IFRS measure.
Contact Information
Daniel Millett
Chief Financial Officer
(416) 231-1462, ext. 221
1Adjusted EBITDA is a non-IFRS financial measure. Refer to the Non-IFRS Financial Measures section of this news release for more information on this non-IFRS financial measure.
SOURCE: Park Lawn Corporation
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