Listed funeral services provider Dignity is expanding, with the purchase of 36 funeral homes from Laurel Funerals for £38m.
Laurel currently operates in 83 locations across the UK. In order to avoid any potential competition concerns, Dignity is only acquiring sites that complement its own geographic spread.
The transaction is expected to close in July.
In a statement yesterday, the UK’s only publicly traded funeral business said it had “successfully acquired and integrated many funeral locations into the group” since its flotation in 2004, citing the similar sized deal to buy Yew Holdings in 2013.
The group added: “The Laurel locations being acquired trade under established local brand names and provide the opportunity to expand the group’s geographical footprint into new areas.”
It also said there is opportunity to improve Laurel’s services, facilities and financial performance, and said it “anticipates that the integration of Laurel will involve limited reorganisation costs and minimal increase in overheads”.
“Capital expenditure of £2m is expected to be required in the first two years of ownership to upgrade the acquired locations,” Dignity stated.
Shares in Dignity were up by 0.44 per cent yesterday.