LEVITTOWN, Pa., April 3, 2014 (GLOBE NEWSWIRE) -- StoneMor Partners L.P. (NYSE:STON) announced today that it has signed definitive agreements to purchase 9 funeral homes, 12 cemeteries and 2 crematories from Service Corporation International (NYSE:SCI) for an aggregate purchase price of approximately $53.8 million in cash. The properties are located in Central Florida, North Carolina, Southeastern Pennsylvania and Virginia, and include approximately 1,140 acres of land, 236 of which are undeveloped. This transaction is subject to closing conditions, including the FTC approval of StoneMor's acquisition of certain of these properties.
"We're delighted to move to the next step of the process we previously announced when StoneMor was named the successful bidder for these properties," said Larry Miller, President & CEO of StoneMor. "The addition of these cemeteries, funeral homes and crematories will facilitate our ongoing national expansion. These are very well run properties which should not require a great deal of up-front investment, but we believe that once we are up and running, in addition to being immediately accretive, we can further enhance the financial performance of these properties."
The cemeteries included in the transaction perform approximately 3,500 interments per year and the funeral homes perform approximately 1,900 annual calls. The cemetery inventories include more than 76,000 developed, unsold spaces, more than 2,400 unsold lawn crypts, 4,200 constructed unsold mausoleum crypts and 4,400 constructed unsold niches. Upon completion of the acquisition, StoneMor will receive control of cemetery merchandise trust funds with a current value of approximately $18.9 million and perpetual care trusts of approximately $15.3 million. StoneMor will assume merchandise liabilities of approximately $10.5 million and accounts receivable in the amount of $5.7 million.
About StoneMor Partners L.P.
StoneMor Partners L.P., headquartered in Levittown, Pennsylvania, is an owner and operator of cemeteries and funeral homes in the United States, with 278 cemeteries and 90 funeral homes in 28 states and Puerto Rico. StoneMor is the only publicly traded deathcare company structured as a partnership. StoneMor's cemetery products and services, which are sold on both a pre-need (before death) and at-need (at death) basis, include: burial lots, lawn and mausoleum crypts, burial vaults, caskets, memorials, and all services which provide for the installation of this merchandise.
For additional information about StoneMor Partners L.P., please visit StoneMor's website, and the Investors section, at www.stonemor.com. Information on StoneMor's website is not incorporated by reference into this press release and does not constitute a part of this press release.
Certain statements contained in this press release, including, but not limited to, information regarding the status and progress of our operating activities, the plans and objectives of our management, assumptions regarding our future performance and plans, and any financial guidance provided, as well as certain information in our other filings with the SEC and elsewhere are forward-looking statements. The words "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "project," "expect," "predict" and similar expressions identify these forward-looking statements. These forward-looking statements are made subject to certain risks and uncertainties that could cause actual results to differ materially from those stated or implied, including, but not limited to, the following: uncertainties associated with future revenue and revenue growth; the effect of economic downturns; the impact of our significant leverage on our operating plans; our ability to service our debt and pay distributions; the decline in the fair value of certain equity and debt securities held in our trusts; our ability to attract, train and retain an adequate number of sales people; uncertainties associated with the volume and timing of pre-need sales of cemetery services and products; increased use of cremation; changes in the death rate; changes in the political or regulatory environments, including potential changes in tax accounting and trusting policies; our ability to successfully implement a strategic plan relating to achieving operating improvements, strong cash flows and further deleveraging; our ability to successfully compete in the cemetery and funeral home industry; uncertainties associated with the integration or anticipated benefits of our recent acquisitions or any future acquisitions; our ability to complete and fund additional acquisitions; litigation or legal proceedings that could expose us to significant liabilities and damage our reputation; the effects of cyber security attacks due to our significant reliance on information technology; uncertainties relating to the financial condition of third-party insurance companies that fund our pre-need funeral contracts; and various other uncertainties associated with the death care industry and our operations in particular.
When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements set forth in our Annual Report on Form 10-K and our other reports filed with the SEC. Except as required under applicable law, we assume no obligation to update or revise any forward-looking statements made herein or any other forward-looking statements made by us, whether as a result of new information, future events or otherwise.
John McNamara (215) 826-2800