InvoCare Limited (ASX:IVC) share price up 2.7% on another acquisition

The InvoCare Limited (ASX: IVC) share price has gone up 2.7% today after announcing another acquisition.

As a reminder, InvoCare is the largest funeral provider in Australia and New Zealand.

Today, InvoCare announced that it has entered into a conditional sales agreement to acquire the business and assets of Archer & Sons Funeral Homes based in the south west region of Western Australia.

InvoCare said that this acquisition is anticipated to be completed on 20 July 2018.

Archers operates in two sites located in Bunbury and Manjimup. The acquisition includes two fully operational funeral homes with mortuary facilities.

The business conducts around 330 funeral services and generates revenue of around $2.4 million per year.

It has been operating in Western Australia for almost 30 years and it has a good reputation in the region.

Martin Earp, InvoCare’s CEO and Managing Director said “Archer & Sons Funeral Homes provides us with another high-quality business to continue the growth of our regional strategy by building on the success of a business that is well established in the local community.

“The south west region of Western Australia has significant potential for growth and we look forward to working with the Archer Family to ensure a smooth transition and identify further opportunities to service families in the surrounding tows and districts.”

Is InvoCare a buy?

InvoCare has now announced:

  • English Rose with $0.7 million of revenue
  • Lester & Son with $3.5 million of revenue
  • Hope & Sons with NZ$5.8 million of revenue
  • Whitestone with NZ$1 million of revenue
  • Southern Highlands with $0.7 million of revenue
  • J A Dunn with $1 million of revenue
  • And now Archer & Sons with $2.4 million

This means that InvoCare has now acquired over $14 million of annualised revenue and this is around a 3% increase of FY17’s revenue. This is a sizeable increase of revenue and could boost FY19 profit nicely.

InvoCare is trading at around 26x FY18’s estimated earnings. It certainly isn’t cheap but I think the long-term outlook is positive due to the ageing demographics. I’d be happy to buy a parcel at today’s price, but it would have been better at $12.50.

For now, a better-valued business could be this exciting share that is predicting profit growth of 30% in FY18 alone and it’s now expanding into Asia.

The best dividend stock to buy in July

Financial year 2018 is here and The Motley Fool’s dividend detective Andrew Page has revealed his must buy dividend share to grow your wealth in 2018.

You might not know this market leader's name, but it's rapidly expanding into a highly profitable niche market here in Australia. Even better, the shares boast a strong, fully franked dividend that should balloon in the years to come. In other words, we're looking at the holy grail of incredible long-term growth potential AND income you can watch accruing in your account in real time!

Simply click here to grab your FREE copy of this up-to-the-minute research report on our #1 dividend share recommendation now.

Motley Fool contributor Tristan Harrison owns shares of InvoCare Limited. The Motley Fool Australia has recommended InvoCare Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!