$68M Buy To Grow StoneMor Funerary Empire

BRISTOL, PA-StoneMor Partners LP has entered into an agreement to buy 45 cemeteries, 30 funeral homes and one pet cemetery from Houston-based Service Corporation International and related entities for approximately $68 million in cash. The properties are located in 17 states and Puerto Rico.

The proposed acquisition takes the locally based company’s number of properties owned and managed to 281, which represents a 37% expansion of its current portfolio. In addition, 13 of the cemeteries and 16 of the funeral homes are in locations where StoneMor does not currently operate: Arkansas, California, Florida, Hawaii, Iowa, South Carolina and Puerto Rico.

In 2006, the properties to be acquired generated more than $44 million in revenues, which is 35% more than StoneMor’s 2006 revenues. In conjunction with the transaction, StoneMor will receive control of cemetery merchandise and service trusts aggregating approximately $66 million, and perpetual care trusts of about $50 million related to the properties.