It was just two months ago that Funeral Director Daily published this article titled “Park Lawn purchases 8 funeral homes in greater Oklahoma City market”.   At that time the press release from Park Lawn Corporation (PLC) noted that “Entering Oklahoma marks an exciting milestone in our growth strategy.. . ” 

And recently, responding to a question about “Prioritization for expansion”, Service Corporation International (SCI) Executive Vice-President and Chief Financial Officer Eric Tanzenberger responded, in part, with this comment, “We want to be in markets that we already exist in as the first stack ranking because we already have — we carry the national scale anywhere that we’re buying. But when we already have that local scale, it can really make 2 plus 2 equal 5. . . “

With that preamble we bring you this press release from Park Lawn Corporation announcing purchase of the Vondel L. Smith & Sons Mortuaries and Crematoriums as well as Heritage Burial Park at South Lakes, all located in Oklahoma City, Oklahoma.  Further information from the press release states “This transaction expands Park Lawn’s presence in the greater Oklahoma City market through the addition of two (2) stand-alone funeral homes and one (1) combination funeral home and cemetery property.”

Park Lawn’s CEO Jennifer W. Hay made the following prepared comments in the press release, “We are excited to broaden our presence in the State of Oklahoma through the strategic acquisition of the Vondel businesses. These outstanding businesses have been deeply rooted in their communities for nearly seventy years and represent a significant addition to our existing footprint in the greater Oklahoma City area.  This expansion strengthens our ability to deliver first-class funeral and cemetery services to families throughout the region.” 

Related — Here is the Vondel L. Smith & Sons business website

Tom Anderson
Funeral Director Daily

Funeral Director Daily take:  Acquisitions and expansions continue among North America’s largest operators.  And, this acquisition and SCI’s Tanzenberger’s comment give us some indication on how the big players are looking at strategic acquisitions moving forward.

From my point of view, it looks like what I call “bolt-on” acquisitions to present businesses and the ability to have a combination funeral home/cemetery facility lead the charts as to desirability by the major companies.  A lot has been said lately in the Death Care business about the potential for premium memorialization products in cemeteries and I think the major players are setting their sites on locations where there is a cemetery or a cemetery can be added.

The “bolt-on” phenomena will also continue in smaller regional centers and small cities as well.  As margins shrink on what may very well be “lower-revenue” services going forward, the ability to “scale” funeral and cremation businesses to lower costs will be very important to Death Care operations going forward.

If you own and operate a funeral home with a good operating local competitor or a consolidator competitor and are in the position of selling, it just goes to reason that those competitors may be able to pay a larger purchase price for your operation.  It is something to keep an open mind about.

More news from the world of Death Care:

• Unclaimed remains of Lewis County veterans to be intered at Tahoma National Cemetery.  The Chronicle (WA)
• Cremation, then and now.  Bay Times and Record Observer (MD)
• Logging off life but living on:  How AI is redefining death, memory, and immortality.  The Conversation
• Herefordshire green burial ground wins regional award.  Herefordshire Times (Great Britain)

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