Join our daily newsletter At The Bell to receive exclusive market insights
- Propel Funeral Partners (PFP) is acquiring Community Funerals and Cremation for Pets
- The company will pay around $2.7 million with a mix of cash and shares and a potential $230,000 payment if certain milestones are achieved
- The businesses operate from four locations in and around Cairns, QLD, one of which will be acquired and the other three will be leased
- Propel Funeral Partners, the second largest private provider of death care services in Australia and New Zealand, says the purchase will facilitate its entry into a new market
- PFP shares have ended the day up 0.21 per cent to close at $4.71 each
Propel Funeral Partners (PFP) will acquire the businesses, assets and related infrastructure associated with the businesses trading as Community Funerals and Cremation for Pets.
The company signed a conditional sale agreement with the businesses to acquire them for a total of roughly $2.7 million.
This consideration includes a $2.4 million cash payment upon completion, which Propel plans to fund using debt facilities, and 64,240 PFP shares to be issued at $4.67 each. The shares will be subject to escrow arrangements for up to three years.
Additionally, an extra $230,000 in cash may be payable if certain financial milestones are achieved within three years.
Established in 2008, Community Funerals performs around 250 funerals each year. Cremation for Pets was formed in 2017 and conducts approximately 400 pet cremations per year.
The businesses operate from four locations in and around Cairns, Queensland, one of which will be acquired as part of the transaction and the other three will be leased.
Together, the businesses generate revenue of roughly $1.7 million per annum and Propel said the acquisition will support its entry into a new market.
Once due diligence and consents from third parties have been satisfied, the acquisition is expected to be completed in the December quarter.
PFP shares ended the day up 0.21 per cent to close at $4.71 each.
