SYDNEY: Propel Funeral Partners Limited (ASX: PFP) announced the execution of binding legal documentation to acquire two well-established funeral service providers in New Zealand, marking a significant expansion of its network into new regional markets.
The acquisitions, which include related assets, infrastructure, and real estate such as three cremation facilities, total approximately A$7.3 million.
This strategic move will enhance Propel’s presence in New Zealand, leveraging the long-standing reputations of the acquired businesses, Twentymans Funeral Services and Thames Crematory, which have been operating in and around Thames, NZ, since 1867, and Richmond Funeral Home and Clareville Crematorium, which have been operating in and around Carterton since 1887.
These businesses collectively generated approximately A$3.7 million in revenue and conducted around 600 funerals in their last financial year. They operate from seven locations, with Propel acquiring three properties and leasing four, including purchase options on three of the leased properties.
The total consideration will be structured as follows: A$6.7 million in cash payable upon completion, A$0.1 million via the issuance of 15,245 Propel ordinary shares upon completion, and up to A$0.5 million in cash payable if certain financial milestones are achieved within four years post-completion.
The cash required for these acquisitions will be funded from the Company’s existing debt facilities.
The acquisitions are anticipated to be completed in the second half of the 2025 financial year, subject to the satisfaction or waiver of customary conditions, including third-party lessor consents, consents to the assignment of key contracts, and regulatory due diligence.