Service Corporation announced the acquisition of Palm Mortuary in Las Vegas on Thursday, December 3rd 2009 in a PR-Web press release. This effectively gives Service Corporation International control of the Las Vegas Funeral Market. This deal was approved by the Federal Trade Commission and the Attorney General of the State of Nevada.
#1 Funeral Corporation in the world purchases Palm Mortuary
Service Corporation International is the World’s largest provider of Funeral Services. It is known for its aggressive acquisitions in the Funeral Industry. It also is known for it’s high prices. In 2009 it has been plagued with Scandal and had a disaster of a year financially in 2009.
To handle this SCI(NYSE:SCI) has resumed a strategy of cutting operating costs(quality of service decline) and acquiring new properties such as Palm Mortuary in Las Vegas. This is not a good situation for the funeral consumer in Las Vegas. In the long run Consumers there will pay more and find it difficult to come in under the average cost of a funeral.
Funeral Industry|Funeral Blog by Your Funeral Guy.
The World’s largest funeral corporation is trying to fund its purchase of Keystone(5th largest funeral corp) by selling “Notes”. This tact used by Hollinger International led by Conrad Black(now in a Canadian prison) has led many a company to it’s demise. The fact that Service Corporation International, SCI, NYSE:SCI, is having trouble funding this purchase shows that the World’s Largest Funeral Corporation Deep Pockets are gone.
It also is another sign of Funeral Industry decline.
"HOUSTON, Nov. 5 /PRNewswire-FirstCall/ -- Service Corporation
International
(NYSE: SCI) ("SCI"), which owns and operates funeral service
locations and
cemeteries, announced today that it has priced an
underwritten public offering
of $150.0 million of senior notes due 2021,
which will bear interest at a rate
of 8.00% per annum. The notes are being sold at
98.115% of par, which equates
to an effective yield to maturity of approximately 8.25%.
SCI expects to
close the sale of the notes on November 10, 2009,
subject to the satisfaction
of customary closing conditions.
SCI intends to use the net proceeds from the offering,
together with available
cash, to fund SCI's acquisition of Keystone North America Inc.
The offering is
being made under SCI's existing shelf registration
statement previously filed
with the Securities and Exchange Commission ("SEC")."
via www.reuters.com
Funeral Industry|Funeral Blog by Your Funeral Guy
The funeral industry is in decline. This can be seen by the latest numbers from Service Corporation International, SCI, NYSE:SCI. Worlds Largest Funeral Corporation loses millions again.
Millions and tens of millions of Service Corporation loss in dollars , in almost every category. SCI showed profits in the third quarter bylaying people off
and not paying overtime.
Revenue loses total about 19 million.
Revenues decreased to $497.2 million from $516.4 million last year. Analysts expected revenue of $480.73 million for the quarter.
After Scandal after Scandal, Financial decline, and a national display of incompetence in the Ted Kennedy Funeral |Service-Corporation International went boasting today. They Brag about their superior management skills after a major purchase.
Service Corporation International Is doing Everyhing it can To Keep its big boss funeral reputation
With all that bad news it appears that Service Corporation International is determined to maintain its big Funeral Boss, Big Death, Big Cemetery,World’s Largest Funeral Corporation Status.
Google reported the Keystone North America Purchase to be $208 Million, Other sources say the purchase is for $256 Million.
SCI may be reviving it’s acquisition strategy to survive!
Here’s the Bragging:
As demonstrated with our purchase of Alderwoods in 2006, we have a proven capability of successfully integrating large acquisitions,” concluded Ryan. “I applaud the SCI team and thank them in advance for their efforts.”
Keystone President and CEO Steve Tidwell stated, “Clearly the potential of this business combination is compelling. With this enhanced operating platform and the combined talent of our two organizations, we believe we can grow this business segment organically and through strategic acquisitions at very reasonable prices, further leveraging our scale in pursuit of customers that value our services.”
“The migration of the Baby-Boomer generation to suburban and rural areas over the coming years will represent a significant opportunity for growth,” added SCI Executive Vice President and Chief Operating Officer Mike Webb. “This transaction and the addition of key members of the Keystone Management team, including President and CEO Steve Tidwell, will position us as the unparalleled leader in this market with over 500 businesses, generating more than $350 million in revenues and serving over 68,000 families per year.”
“Our current portfolio has over 300 similarly positioned businesses which consistently generate solid margins and predictable cash flows,” said SCI President and CEO Tom Ryan. “We believe the opportunity to nearly double our presence in this attractive segment through an accretive transaction will generate significant value for our shareholders.”
Keystone, headquartered in Tampa, Florida is North America’s 5th largest provider of death-care products and services with 199 funeral homes and 15 cemeteries operating in 31 states and the Province of Ontario, focusing specifically on the small to mid-size markets.
Revealed here are the details in the Eden Memorial Park Lawsuit. There is also a link here to a copy of the actual lawsuit. The lawsuit is a class action. It is against Service Corporation International, SCI, NYSE:SCI. At Eden Memorial Park up to 500 Graves were desecrated.
These are the charges:
Intentional Emotional Distress,
Negligence
Tortuous Interface with the right to dispose of remains.
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