StoneMor Partners L.P. Announces Signing an Agreement to Acquire Nine Cemeteries in Michigan
StoneMor Partners L.P. today announced that it had acquired nine cemeteries in Michigan for an aggregate price of approximately $14.0 million in cash, subject to various post-closing adjustments. The acquisition of these properties is consistent with StoneMor’s growth strategy and provides for further utilization of its national operating platform. In conjunction with this transaction, StoneMor will receive control of cemetery merchandise and service trusts of approximately $45.0 million, and perpetual care trusts of approximately $15.0 million. The merchandise and service liability costs assumed at current cost are approximately $16.0 million.
These properties are expected to contribute approximately $9.0 million to the value of contracts written and $13.0 million in production-based revenue during their first year of operation. Although there is no assurance of future performance or increased distributions to unit holders, historically, StoneMor has been able to improve revenues and operating profits of acquired properties, and StoneMor’s prior acquisitions have contributed to increases in distributions to its unit holders.
Currently, StoneMor operates three cemeteries in the state of Michigan. This acquisition is expected to strengthen the company’s current market position in the state. Each of the acquired cemeteries is expected to benefit from the company’s existing operational management structure. In 2009, the cemeteries that we are acquiring performed approximately 2,400 burials. Additionally, as of 2009, these properties have over 300 undeveloped acres available for sale, over 71,000 unsold cemetery spaces in the developed sections, over 3,000 unsold lawn crypts, over 5,000 constructed unsold mausoleum crypts, and over 15,000 constructed unsold cremation niches.
The cemeteries are located in the following cities: Lansing, Kalamazoo, Rochester Hills, Peck, Okemos, Mount Moris, and Muskegon.
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