Park Lawn Corporation
TSX VENTURE : PLC

Park Lawn Corporation

February 11, 2016 17:34 ET

Park Lawn Corporation Announces Investment in Mundell Funeral Home Limited

TORONTO, ONTARIO--(Marketwired - Feb. 11, 2016) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Park Lawn Corporation (TSX VENTURE:PLC) ("Park Lawn" or the "Company") is pleased to announce that it has acquired an 80% interest in Mundell Funeral Home Limited, the leading provider of funeral services in Orillia, Ontario and surrounding areas. Highlights of the transaction are as follows:

  • Park Lawn to acquire 80% of Mundell Funeral Home Limited for total consideration of $3,350,000 in cash
  • John Mundell will retain, indirectly, a 20% ownership in Mundell Funeral Home Limited which, under certain conditions and subject to regulatory and other consents, may be converted into common shares of Park Lawn
  • Park Lawn's investment is specifically designed to enhance the delivery and scope of services being offered to Mundell's at-need and pre-need client families
  • With the synergies that are expected, the transaction will be accretive to earnings Park Lawn's shareholders
  • The acquisition falls within the multiple range for precedent transactions in the death care industry of between 5.0x and 8.5x EBITDA

John Mundell, the third generation of Mundell family funeral directors and President of Mundell Funeral Home Limited, said, "We are very excited about our partnership with Park Lawn Corporation. It will allow the Mundell family to continue to be involved in serving Orillia and area with the highest standard of caring and compassionate funeral service which our community has come to expect from our firm over our 102 years in business in Orillia."

Park Lawn has a long history of partnering with progressive independent funeral home operators in Ontario, Quebec, Manitoba and Saskatchewan. The ownership, management and staff of Mundell Funeral Home share with Park Lawn similar business philosophies, long-term goals, and the highest regard for standards of customer service.

"Our recent partnership with the Mundell family is underpinned by a strong emphasis on 'team' culture and maintaining close connections with the communities in which we operate," said Andrew Clark, CEO of Park Lawn.

About Park Lawn

Park Lawn Corporation 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). 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 operates Tubman/Cadieux Funeral Homes in the Ottawa region and Parkland Funeral Holdings in Manitoba and Saskatchewan. The Company's Harmonia business currently operates under license in Quebec City, Laval, Saint-Apollinaire and Saint-Georges.

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", "pro-forma" and other similar expressions. These statements are based on the Company's expectations, estimates, forecasts and projections and include, without limitation, statements regarding anticipated synergies, the purchase price multiple and the anticipated effect of the acquisition on the performance of the Company (including the extent to which the acquisition is accretive to shareholders). The forward-looking statements in this news release are based on certain assumptions, including without limitation that Mundell Funeral Home's business will continue to perform in a manner consistent with past practice, there will be no unexpected expenses occurring as a result of the acquisition and that synergies will be achieved. 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.

Neither the TSX Venture Exchange (the "TSXV") nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

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 measure is 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 similar measures reported by such other organizations. Please see the Company's most recent management's discussion and analysis for how the Company reconciles EBITDA to the nearest IFRS measure.

Contact Information

  • Park Lawn Corporation
    Andrew Clark
    Chief Executive Officer
    416-231-1462