A Levittown-based owner and operator of cemeteries and funeral homes has signed “definitive agreements” to purchase 9 funeral homes, 12 cemeteries and 2 crematories from Service Corporation International.
StoneMor Partners L.P. is making the deal for for approximately $53.8 million in cash, according to a press release.
Advertisements
The properties StoneMor is purchasing are in Central Florida, North Carolina, Southeastern Pennsylvania and Virginia. The deal includes 1,140 acres of land, 236 of which are undeveloped, the press release said.
“The addition of these cemeteries, funeral homes and crematories will facilitate our ongoing national expansion. These are very well run properties which should not require a great deal of up-front investment, but we believe that once we are up and running, in addition to being immediately accretive, we can further enhance the financial performance of these properties,” said Larry Miller, president & CEO of StoneMor.
Here’s some more details on the properties from StoneMor:
The cemeteries included in the transaction perform approximately 3,500 interments per year and the funeral homes perform approximately 1,900 annual calls. The cemetery inventories include more than 76,000 developed, unsold spaces, more than 2,400 unsold lawn crypts, 4,200 constructed unsold mausoleum crypts and 4,400 constructed unsold niches. Upon completion of the acquisition, StoneMor will receive control of cemetery merchandise trust funds with a current value of approximately $18.9 million and perpetual care trusts of approximately $15.3 million. StoneMor will assume merchandise liabilities of approximately $10.5 million and accounts receivable in the amount of $5.7 million.
Advertisements
The new transaction is subject to closing conditions, including federal approval of StoneMor’s acquisition of certain of these properties.
