TORONTO, ONTARIO--(Marketwired - Oct. 1, 2014) -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
Park Lawn Corporation (TSX VENTURE:PLC) (the "Company" or "Park Lawn"), Canada's only publicly-traded cemetery, cremation and funeral services business, is pleased to announce that it has acquired a 50% interest in six funeral homes and a cremation facility located in Manitoba and Saskatchewan. The total investment by the Company is approximately $2.6 million, which includes its 50% equity interest plus a loan that was used to fund the buyout of a former shareholder. The remaining 50% interest in the business is held by Joe Coffey, a funeral professional with over 20 years of experience in the industry.
The acquired funeral homes and cremation facility are located in the following markets:
- Dauphin, Manitoba (two locations)
- Roblin, Manitoba
- Ste-Rose-du-Lac, Manitoba
- Swan River, Manitoba
- Kamsack, Saskatchewan
Park Lawn expects the transaction to initially add approximately 500 funerals per year to its existing volume. In addition, the Company expects to gain operating synergies in purchasing and inventory management, information technology and other areas.
"We are delighted to partner with an experienced operator like Joe in growing our business," commented Andrew Clark, CEO of Park Lawn. "Manitoba and Saskatchewan present an attractive opportunity for Park Lawn, and we now have a stable base from which to build our business in those markets." Adds Joe Coffey, "We are excited to have this transaction completed and very much look forward to working with Park Lawn in the coming years."
About Park Lawn
Park Lawn Corporation provides goods and services associated with the disposition and memorialization of human remains. Products and services are sold to people on a pre-planned basis (pre-need) or at the time of a death (at-need). The Company owns and operates six cemeteries in the Greater Toronto Area and operates the crematorium at the Brampton Crematorium and Visitation Centre. The Company also owns 50% of Amety Ltd, which operates Tubman/Cadieux Funeral Homes in Ottawa and Western Quebec. The Harmonia business of the Company currently operates in Quebec City, Laval, Saint-Apollinaire, Montreal and the Beauce region under license. Park Lawn's common shares are listed on the TSX Venture Exchange under the symbol "PLC". The Company is the only Canadian publicly listed cemetery, funeral and cremation business. Park Lawn makes monthly dividend payments to its shareholders. The monthly dividend has been paid each month since January, 2011 and is currently $0.038 per share ($0.46 per share on an annual basis).
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-looking Statements
This news release contains forward-looking statements regarding the Company's business and growth plans, including statements related to the impact of the transaction on the Company's funeral volumes and expectations regarding operating synergies in purchasing and inventory management, information technology and other areas. Although management of the Company believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. By their nature, forward-looking statements are inherently uncertain, are subject to risk and are based on certain assumptions, including that the acquired business will continue to perform in the same manner following closing as it did prior to closing and that synergies will materialize. Readers are cautioned to not place undue reliance on forward-looking statements made herein because a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward- looking statements. The future outcomes that relate to forward-looking statements may be influenced by many factors, including, but not limited to, risks involved in integrating the acquired business or the effects of unexpected costs, liabilities or delays on the Company's results, as well as the factors described under the heading "Risk Factors" in the Company's most recent Annual Information Form. Forward-looking statements are provided as of the date hereof and the Company assumes no obligation to update or revise such forward-looking statements to reflect new events or circumstances except as required under applicable securities laws.