Security National Financial makes two January acquisitions

January 27, 2022/Finance/

Security National Financial Corporation (SNFC), parent company of Utah-based Memorial Mortuaries announced in two separate press releases the acquisition of two funeral service companies, one of which also operates a large cemetery in addition to their four funeral locations.

In this press release you can read of the acquisition of Salt Lake City provider Holbrook Mortuary. Holbrook Mortuary is a third-generation firm and has been in operation since 1941. Here’s what SNFC’s President Scott M. Quist said of this addition to the company’s group of funeral homes, “We feel it a great compliment that the John and Sandy Holbrook family have chosen to join Security National. For generations, Holbrook has been a well-respected firm in our community. We feel this acquisition is an organic addition to our existing operations in the Salt Lake Valley and will allow us to further expand our “Best of State” award winning services.”

Here is the website for the Holbrook Mortuary

In this press release announced earlier in January, SNFC announced the purchase of the Rivera Family Funeral Homes and Sante Fe Memorial Gardens. Rivera Family Funeral Home is a New Mexico based death care service provider with four mortuaries and one cemetery located in northern New Mexico. The Rivera businesses serve approximately 1,300 families annually.

According to their website, the Rivera Family Funeral Home has been family owned and operated for 80 years and has its locations in Santa Fe, Espanola, Taos, and Los Alamos, New Mexico.

Here’s what Adam G. Quist, Security National Financial’s Vice-President said of this transaction, “We are honored that Tim Rivera and the Rivera family have chosen to join our team. The Rivera Family Funeral Homes and Santa Fe Memorial Gardens are tremendous additions to our organization. This acquisition is a natural expansion of our footprint as we extend our award-winning services to New Mexico.”

Here is the website for the Rivera Family Funeral Home

Here is the website for Security National Financial Corporation

Funeral Director Daily take: I like to look at SNFC as a “Quiet Company” in the death care industry. However, being “quiet” in no way undermines the influence that they have. Started as an insurance company about 60 years ago they have moved into mortgages, preneed funeral insurance, final expense insurance, funeral funding, and services such as funerals and cemeteries. In a company produced video on SNFC’s website it is mentioned that they have “Different businesses that create value for each other“.

The company’s Memorial Division has done well as President Scott M. Quist mentioned in their 3rd Quarter 2021 Earnings Report. Here’s his comment on the Memorial Division, “Our Memorial segment also delivered very solid Quarter 3 and year-to-date results with revenues increasing 22% for the quarter and operational income increasing 125% year-to-date. . . . . This excellent performance is not an isolated occurrence. It is instructive to note that our Memorial segment has achieved an average 24% compound annual growth rate in operational income over the last six years.”

Of late we’ve seen them make expansions not only by buying funeral homes and cemeteries but not long ago they purchased another insurance company. Being a public company they have the asset base, revenue, and financial ability to continue making moves and growing in death care if they so wish. While their memorial businesses are highly concentrated in the western United States, their other businesses operate in a much larger geographic area which would make their move into a larger death care presence easier should they wish to do so.

It may be that the Rivera Family Funeral Home is a purchase that shows a barometer of what is to come from SNFC. The acquisition is large in size for SNFC’s Mortuary Division and also is somewhat out of their geographic sphere of influence. However in the world of funeral home succession plans, SNFC has what a lot of family funeral home owners may be looking for. . . . .public company financing and payment ability combined with a historical strong family-led leadership group.

Disclaimer — The author of this article holds a stock position in Security National Financial Corporation.

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