WELLINGTON: Propel Funeral Partners Ltd. (ASX: PFP) on Thursday announced it has completed or executed binding agreements to acquire three funeral services providers in New Zealand, alongside related assets, infrastructure and real estate.
The total consideration for the acquisitions is up to approximately 9.1 million New Zealand dollars, an announcement said.
The acquisitions include Evans Funeral Services, which operates Gisborne Tairawhiti Cremation Services in Gisborne; Leishman Funeral Services in Balclutha; and Collingwood Funeral Home in Rotorua. Together, the businesses generate about 4 million NZD in annual revenue, conduct more than 700 funerals and operate from four locations.
Propel will pay 8.3 million NZD in cash at completion, funded from its debt facilities. An additional 800,000 NZD may be paid if certain financial milestones are met over a four-year earnout period.
The acquisitions are expected to close in the fourth quarter of fiscal 2026 or the first quarter of fiscal 2027, subject to customary conditions.
The company also provided guidance for fiscal 2026, projecting revenue between 225 million and 230 million Australian dollars, and operating EBITDA between 54.5 million and 56.5 million Australian dollars. In fiscal 2025, Propel reported revenue of 225.8 million AUD and operating EBITDA of 56.2 million AUD.
Propel expects to perform approximately 22,850 funerals, a 1% increase from fiscal 2025, with average revenue per funeral growing about 2%. Operating costs are forecast to rise 2.5%. The company noted a stronger Australian dollar against the New Zealand dollar is expected to reduce revenue by about 4 million AUD and operating EBITDA by 1 million AUD.
Propel is the second-largest provider of death care services in Australia and New Zealand, operating from 209 locations including 41 cremation facilities and nine cemeteries.
The company cautioned that forward-looking statements involve risks and uncertainties, and actual results may differ materially from projections.
