Acquisition expands PLC cemetery and funeral home operations in the Carolinas
TORONTO, Nov 1, 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 Citadel Management LLC ("Citadel") for a purchase price of
approximately US$12.9 million in cash, subject to customary working capital adjustments (the
"Acquisition").
"We are pleased to be expanding our operations in North Carolina and entering the
South Carolina market with the purchase of Citadel," stated Andrew
Clark, Chairman and CEO of PLC. "This acquisition fits well with our existing portfolio and provides an opportunity for
growth in these two new markets."
"We look forward to working with Park Lawn and see them as the right partner to continue growing our business throughout our
communities," stated William W. Gaffney, current President of Citadel. "The team at Park Lawn has
established a strong portfolio and management team that will allow us to maximize the opportunity for growth in the long
term."
Highlights of the Acquisition
- Adds 29 cemeteries and 8 funeral homes (including 1 on-site) in North and South Carolina
into PLC's portfolio, while building off our previously announced acquisition of Wells Funeral Homes and Cremation Services in
North Carolina.
- Following further due diligence which reduced the expected EBITDA of Citadel in the first full year of operations following
closing from US$2.5 million to US$2.4 million, PLC negotiated a
purchase price reduction of US$500,000. If Citadel achieves its expected results, the purchase
price of US$12.9 million will reflect a multiple of approximately 5.4x EBITDA.
- Upon closing, PLC will be investing an additional US$1.7 million for new mausoleum inventory
currently under construction within the Citadel portfolio. This investment is consistent with our
strategic objective of using acquisitions as an opportunity to drive organic growth.
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 has a North
American wide platform with operations in five Canadian provinces and twelve 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 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 Citadel's expected EBITDA, the expected purchase price multiple and the impact of the acquisition on PLC's business.
The forward-looking statements in this news release are based on certain assumptions, including those regarding present and
future business strategies, the environment in which the PLC will operate in the future, expected revenues, expansion plans and
the 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 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.
Non-IFRS Measures
EBITDA 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 the Company believes that such measures are relevant in interpreting the
effect of the Acquisition on the Company. Such measure, 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 its
EBITDA to the nearest IFRS measure.
SOURCE Park Lawn Corporation
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