Propel Funeral Partners makes New Zealand acquisition, raises $80 million

February 23, 2024/Finance/

Last year the largest death care service provider in Australia and New Zealand, InvoCare, was taken private in a buy-out by private equity company TPG Global. It appears that action has led to the 2nd largest provider of death care services of those nations, Propel Funeral Partners, to rapidly move forward with their own expansion.

This recent article tells of Propel Funeral Partners purchase of the five-facility Southern Funeral Home in New Zealand for $AUS 4 million (US $ 2.6 million). The article makes these comments, “This acquisition, announced earlier this week, is part of Propel’s ambitious expansion strategy, adding to its significant portfolio of death-care services across Australia and New Zealand.. . . . .”This acquisition is Propel’s eighth for the fiscal year, highlighting its aggressive growth in the sector.”

In addition to that announcement, this press release from the Australian Stock Exchange tells us that Propel Funeral Partners recently raised over $AUS 80 million from institutional investors. The financial raise also includes an additional $AUS 10 million for existing shareholders to have the ability through a Share Purchase Plan (SPP) to add to their own equity positions.

Here’s what Albin Kurti, Managing Director of Propel Funeral Partners said of that situation, “We believe this is the right time to further strengthen our balance sheet, as the Company seeks to continue to execute on its acquisition led growth strategy in what is a highly fragmented industry.The Placement will also provide an opportunity to broaden Propel’s share register and we are pleased to offer all existing eligible shareholders the ability to participate in the capital raising via the SPP.”

Here is the website of Southern Funeral Home.

Here is the website for Propel Funeral Partners.

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