StoneMor Inc. (NYSE: STON), a
leading owner and operator of cemeteries and funeral homes, today
announced it has signed a definitive agreement to sell the assets
of its Oregon and Washington locations to Clearstone Memorial
Partners, LLC (“Clearstone”) for a total cash purchase price of
$6.2 million. The locations included in the transaction are
Farnstorm Mortuary in Independence, Oregon, Fir Lawn Memorial Park
and Mortuary in Hillsboro, Oregon, Forest Lawn Cemetery in Gresham,
Oregon, Hillcrest Memorial Park, Crematory and Mortuary in Medford,
Oregon, Keizer Funeral Chapel and Farnstorm Cremation Center in
Keizer, Oregon, Memory Gardens Memorial Park and Memory Gardens
Mortuary in Medford, Oregon, Peake Funeral Chapel in Milwaukie,
Oregon, Restlawn Memory Gardens, Mausoleum and Restlawn Funeral
Home in Salem, Oregon, Roseburg Memorial Cemetery in Roseburg,
Oregon, Valley View Cemetery in Sutherlin, Oregon, Wilson’s Chapel
of Roses and Roseburg Cemetery in Roseburg, Oregon, Care Cremation
Service in Clackamas, Oregon, Marysville Cemetery in Marysville,
Washington and Oakwood Hill Cemetery and Funeral Chapel in Tacoma,
Washington.
The transactions are targeted to close, subject to confirmatory
due diligence and regulatory approvals, on or before December 31,
2020.
StoneMor also announced it has completed the previously
announced sale of the assets of its remaining California locations
to entities owned by John Yeatman and Gary Saxton for a total
purchase price of $7.1 million, subject to certain additional
adjustments.
Joe Redling, StoneMor’s President and Chief Executive Officer
said, “With the execution of this APA, we are completing the
strategic exit from the West Coast and upon closing will have
substantially optimized our footprint for improved management
efficiency and cost effectiveness. While we will continue to
evaluate additional divestiture opportunities on an individual
basis, this transaction completes the major efforts and our team
will be focused upon the continued improvement of the operating
performance in our retained portfolio. With the closing of the sale
of California assets, our divestiture program has resulted in total
net proceeds in excess of $57 million, a sizable deleveraging of
our balance sheet. Our balance sheet is now well positioned for
future growth and success.”
“We are excited to complete this transaction and are looking
forward to serving the families in the Oregon and Washington
communities,” said Zach Edwards, Clearstone’s Co-Founder. “StoneMor
has established a solid foundation in these markets and we intend
to continue to grow and build upon that foundation.”
Per the indenture governing its Senior Secured PIK Toggle Notes
(“Senior Notes”), StoneMor will use $5.7 million of net proceeds
from the California sale and 80% of the net proceeds from the sale
to Clearstone to redeem a portion of its outstanding Senior
Notes.
About StoneMor
Inc.
StoneMor Inc., headquartered in Trevose, Pennsylvania, is an
owner and operator of cemeteries and funeral homes in the United
States, with 313 cemeteries and 82 funeral homes in 27 states and
Puerto Rico.
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 Inc., please visit StoneMor’s website, and the investors
section, at http://www.stonemor.com.
CONTACTInvestor RelationsStoneMor Inc.(215)
826-4438
About Clearstone
Memorial Partners
Clearstone Memorial Partners is an operator of funeral homes,
crematoriums, and cemeteries co-founded by David Deighton and Zach
Edwards. Clearstone looks to further its footprint across OR, WA,
and the rest of the United States. For additional information about
Clearstone Memorial Partners, please visit Clearstone’s website at
http://www.clearstonememorialpartners.com
CONTACTZach EdwardsManaging
Directorzach@clearstonememorialpartners.com
Cautionary Note Regarding Forward-Looking
Statements
Certain statements contained in this press release, including,
but not limited to, information regarding the anticipated date for
the closing of the sale to Clearstone, are forward-looking
statements. Generally, the words “believe,” “may,” “will,”
“estimate,” “continue,” “anticipate,” “intend,” “project,”
“expect,” “predict” and similar expressions identify these
forward-looking statements. These statements are made pursuant to
the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995.
Forward-looking statements are based on management’s current
expectations and estimates. These statements are neither promises
nor guarantees and are made subject to certain risks and
uncertainties that could cause the actual timing of the closing of
these and future divestitures to vary from those stated or implied
in this press release. StoneMor’s major risks that may impact such
timing are related to uncertainties associated with current
business and economic disruptions resulting from the recent
coronavirus outbreak and its ability to identify, and negotiate
acceptable agreements with, purchasers of additional
properties.,
When considering forward-looking statements, you should keep in
mind the risk factors and other cautionary statements set forth in
StoneMor’s Annual Report on Form 10-K and Quarterly
Reports on Form 10-Q and the other reports that StoneMor
files with the Securities and Exchange Commission, from time to
time. Except as required under applicable law, StoneMor assumes no
obligation to update or revise any forward-looking statements made
herein or any other forward-looking statements made by it, whether
as a result of new information, future events or otherwise.
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