At the time of writing, the Propel Funeral Partners share price is up 5.54%% to $4.00.
What did Propel acquire?
Propel announced this morning that it has executed binding sale agreements to acquire three funeral services businesses.
The three businesses include:
- Berry Funeral Directors located in Norwood, Adelaide
- Glenelg Funerals located in Glenelg, Adelaide
- State of Grace which operates from two locations in Auckland
Together, the businesses perform approximately 1,200 funerals per annum and generated combined revenue of $9.0 million in the most recent financial year. Propel Funeral Partners expects the acquisition to be earnings accretive in year one.
Propel will acquire the three businesses and related assets and infrastructure for a total consideration of up to $17.6 million.
According to the announcement, $15.2 million in cash and $0.2 million in shares (subject to escrow arrangements) will be paid on the completion of the proposed transactions.
In addition, $2.2 million will be payable in cash if certain financial milestones are achieved during the three years following the acquisition.
The acquisition will be funded by existing debt facilities.
The acquisition will expand the company’s network in Australia and New Zealand. It will also drive entry into a new metropolitan market in Adelaide and expand its presence in Auckland.
Excluding the acquisition, Propel Funeral Partners currently operates 136 locations across Australia and New Zealand. This includes 2 sites in South Australia and 25 in New Zealand.
Propel Funeral Partners share price snapshot
The Propel Funeral Partners share price has rallied strongly in 2021, up 40% year-to-date.