Acquisition expands PLC cemetery and mausoleum operations into New Jersey and
New York
TORONTO, March 7, 2018 /CNW/ - Park Lawn Corporation (TSX: PLC)
("PLC" or the "Company") is pleased to announce that it has completed the previously announced
acquisition of all the outstanding membership interests of CMS Mid-Atlantic ("CMS Mid-Atlantic") for a purchase price of
approximately US$50 million in cash, subject to customary working capital adjustments. The purchase
price was funded from PLC's existing credit facility.
Acquisition Highlights
- Continues to accelerate PLC's growth strategy, while increasing its scale and geographic diversification in the U.S.
market.
- Expected to materially increase PLC's revenue and be immediately accretive to adjusted EBITDA and adjusted cash flow, while
providing a business platform with strong operating margins.
- The purchase price multiple will be approximately 9.4x CMS Mid-Atlantic's 12-month budgeted EBITDA of US$5.2 million.
- Going forward, CMS Mid-Atlantic's experienced management will join the Company's existing U.S. management team, which will
help the Company further execute its growth strategy.
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
98 businesses including cemeteries, crematoria, funeral homes, chapels, planning offices and a transfer service. PLC
operates in five Canadian provinces and six US states.
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 the Company 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" and other similar expressions. These
statements are based on the Company's expectations, estimates, forecasts and projections and include, without limitation,
statements regarding the Company's continued growth strategy, the anticipated effect of the Acquisition on the performance of the
Company (including the extent to which the Acquisition is expected to be accretive to adjusted EBITDA and adjusted cash flow and
provide strong operating margins), the expected purchase price multiple and CMS Mid-Atlantic's 12 month budgeted EBITDA. The
forward-looking statements in this news release are based on certain assumptions, including without limitation that CMS
Mid-Atlantic's business will continue its current performance, the Company will be able to retain key CMS Mid-Atlantic personnel,
there will be no unexpected expenses occurring as a result of the Acquisition, and that currency exchange rates remain
consistent. 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 the Company'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, the Company 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
EBITDA, adjusted EBITDA and adjusted cash flow are not measures recognized under IFRS and do not have standardized meanings
prescribed by IFRS. Such measures are presented in this news release because management of the Company believes that such
measures are relevant in interpreting the effect of the Acquisition on the Company. Such measures, as computed by the Company,
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 see the Company's most recent management's discussion and analysis
for how the Company reconciles such measures to the nearest IFRS measure.
SOURCE Park Lawn Corporation
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