Park Lawn Corp. announced in a Feb. 8 news release that is has agreed to buy substantially all of the assets of Carson-Speaks Chapel in Independence, Missouri; Speaks Buckner Chapel in Buckner, Missouri; Speaks Suburban Chapel in Independence, Missouri; and Oak Ridge Memory Gardens in Independence, Missouri.
The Speaks acquisition expands Park Lawn’s footprint in the Kansas City metropolitan market through the addition of three stand-alone funeral homes and one stand-alone cemetery and is anticipated to close in early April 2023 following the receipt of regulatory approval.
“We are pleased to further solidify our strong operating position in the greater Kansas City metropolitan area through the strategic acquisition of the Speaks businesses,” said J. Bradley Green, chief executive officer of PLC. “These distinguished businesses not only closely align with Park Lawn’s values but will also further our operational synergies in the market. We are honored to welcome the Speaks businesses and their teams into the Park Lawn family.”
Highlights of the transaction include:
- The addition of three stand-alone funeral homes and one stand-alone cemetery.
- The transaction represents 772 calls per year, 80 interments per year, and is expected to be financed with funds from PLC’s credit facility and available cash on hand.
- Following the closing and integration of the transaction, the Speaks acquisition is expected to add approximately US$2,247,759 in Adjusted EBITDA annually.
- For the 12 months ended December 31, 2021, PLC had Adjusted EBITDA of $76,284,577 and net earnings of $27,812,866.
- The agreed upon purchase price multiple for the transaction is within PLC’s publicly-stated targeted adjusted EBITDA multiple range for its historical transactions.