Finance

StoneMor completes merger with Axar Capital. . . becomes a private company

Foundation Partners why I partnered

Last week death care property owner and operator StoneMor announced, in this press release, that they had completed their merger with Axar Capital Management whereby StoneMor will become a private and wholly owned subsidiary of Axar Capital Management.  Prior to this “take private” movement, which was announced in this May 25, 2022, press release, Axar Capital Management had owned approximately 75% of the outstanding StoneMor public stock.

StoneMor’s stock was taken off the public exchanges as of November 4 and will no longer be traded.  Each existing shareholders received a cash payment of $3.50 per share of stock owned.

According to the press release, “StoneMor Inc., headquartered in Bensalem, Pennsylvania, is an owner and operator of cemeteries and funeral homes in the United States, with 302 cemeteries and 74 funeral homes in 23 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.”

Funeral Director Daily take:  As you may know, Funeral Director Daily has formed the Death Care Index (DCI) that was a dollar valued index representing one share of stock in each of eight death care public companies when started.  StoneMor being taken private brings the DCI down to six companies as preneed provider, and public company, Assurant sold their preneed business last year and was removed from the DCI at that time.

The Death Care Index will be recalibrated using the six remaining death care companies who operate in the public stock realm.  They are Service Corporation International, Park Lawn Corporation, Carriage Services, Security National Financial Corporation, Matthews International, and Hillenbrand Industries.

Tom Anderson
Funeral Director Daily

The last complete financial year numbers that we have for StoneMor will be their 2021 year end numbers in which they recorded $268 million in revenues and an operating profit of $6.6 million.  Using the “Trailing Twelve Months” numbers up through June 2022, the company had recorded $267.6 million in revenue and an operating loss of 12.9 million.

There is a lot of speculation as to what will happen with StoneMor now that it is a private company.  Based on the $3.50 per share price Seeking Alpha calculates that the company had a Market Capitalization of $419.2 million.  With a combined total of 376 properties (funeral home and cemetery) that would work out to a value of $1.15 million per property.

There is speculation from all sides.  StoneMor could continue as an operating entity or it is possible that Axar Capital Management may look to sell properties turning them into cash.  Or, a combination of those strategies could occur.  We do now know, however, that Axar is able to move StoneMor in whatever way they strategize without the requirements of being a public company.

Here is the StoneMor website

Here is the map of StoneMor properties

More news from the world of Death Care:

Enter your e-mail below to join the 2,983 others who receive Funeral Director Daily articles daily:


 

Print Friendly, PDF & Email

One Comment

  1. As you know StoneMor has another $400M in debt, so the actual cost is well over 2M per location. Plus many of their locations are 80-90% full, lowering the future value. However with that said it does have some amazing locations. It will be interesting to see what Axar does.

Leave a Comment

Your email address will not be published.