Park Lawn Corp T.PLC

Park Lawn Corporation Responds to Market Rumours

[Betteryear2]

TORONTO, ON / ACCESSWIRE / June 29, 2023 / Park Lawn Corporation (TSX:PLC)(TSX:PLC.U) ("Park Lawn", "PLC", or the "Company") today confirmed, in response to industry media rumors, that it has submitted a preliminary all cash proposal to the Board of Directors of Carriage Services, Inc. (NYSE: CSV) ("Carriage") to purchase all of the outstanding stock of Carriage. The proposal was made confidentially and subject to the completion of satisfactory due diligence and the negotiation and execution of a mutually satisfactory definitive acquisition agreement.

Park Lawn Corporation Responds to Market Rumours Regarding a Potential Acquisition of Carriage Services, Inc. (accesswire.com)

[zforzebra]

Great, it it goes through.  It almost doubles the size of PLC vand PLC is a better operator than CSV, so they will be able to extract efficiencies.

[zforzebra]

This brewing news was likely a strong driver of the recent stock declines.  Someone in the know wanted to acquire more shares on the cheap.  Otherwise, there was no news of note to warrant recent price declines.  In fact, the recent news has been great with 3 earnings beats in a row.

[Thestockguy]

Do you have any insights on that the impact of such an 'all cash' purchase would be on the Park Lawn balance sheet?

[zforzebra]

Just what is in the press release.  The private equity partner seems to be sharing which is good.  CSV does have a lot of debt that would be assumed in any acquisition, so that's presummably going to weaken the balance sheet.