SYDNEY, AUSTRALIA: Propel Funeral Partners Limited (ASX: PFP) has completed and/or executed a binding sale agreement to acquire two funeral service businesses and one pet cremation business, including related assets, real estate and infrastructure, for total consideration of up to $36.9 million.
The three acquisitions will broaden the company’s network in Australia and New Zealand, facilitating Propel Funeral Partners’ expansion in an existing metropolitan funeral market (Adelaide), entry into a new metropolitan funeral market (Hamilton) and a new metropolitan pet loss market (Auckland).
The three acquisitions relate to:
• Alfred James & Sons (Alfred James), which operates from seven locations and has provided funeral and related services to client families in and around Adelaide, South Australia for over 100 years;
• Seddon Park Funeral Home (incorporating Sadliers Funeral Services) (Seddon Park), which operates from two locations and has provided funeral and related services to client families in and around Hamilton and Morrinsville, New Zealand for circa 30 years; and
• Pets at Rest, which operates from one location and has provided pet loss services to clients in and around Auckland, New Zealand for over 20 years.
Together, the businesses:
• generated revenue of approximately $12.0 million in their most recent financial year (i.e. circa 8% of Propel’s revenue in FY22);
• perform approximately 1,200 funerals and 7,000 pet cremations per annum;
• operate from ten locations, of which Propel will:
– acquire eight properties, including seven in metropolitan Adelaide; and
– lease two properties; and
• are expected to be earnings accretive in year one.
Propel is listed on the Australian Securities Exchange and is the second largest provider of death care services in Australia and New Zealand. Propel Funeral currently operates from 152 locations, including 35 cremation facilities and 9 cemeteries.