Park Lawn Corporation Completes Acquisition of CMS Mid-Atlantic

Acquisition expands PLC cemetery and mausoleum operations into New Jersey and New York

TORONTO, March 7, 2018 /CNW/ - Park Lawn Corporation (TSX: PLC) ("PLC" or the "Company") is pleased to announce that it has completed the previously announced acquisition of all the outstanding membership interests of CMS Mid-Atlantic ("CMS Mid-Atlantic") for a purchase price of approximately US$50 million in cash, subject to customary working capital adjustments. The purchase price was funded from PLC's existing credit facility.

Acquisition Highlights

• Continues to accelerate PLC's growth strategy, while increasing its scale and geographic diversification in the U.S. market.
• Expected to materially increase PLC's revenue and be immediately accretive to adjusted EBITDA and adjusted cash flow, while providing a business platform with strong operating margins.
• The purchase price multiple will be approximately 9.4x CMS Mid-Atlantic's 12-month budgeted EBITDA of US$5.2 million.
• Going forward, CMS Mid-Atlantic's experienced management will join the Company's existing U.S. management team, which will help the Company further execute its growth strategy.

About Park Lawn Corporation:

PLC provides goods and services associated with the disposition and memorialization of human remains. Products and services are sold on a pre-planned basis (pre-need) or at the time of a death (at-need). PLC and its subsidiaries own and operate 98 businesses including cemeteries, crematoria, funeral homes, chapels, planning offices and a transfer service. PLC operates in five Canadian provinces and six US states.

Cautionary Statement Regarding Forward-Looking Information

This news release may contain forward-looking statements (within the meaning of applicable securities laws) relating to the business of the Company and the environment in which it operates. Forward-looking statements are identified by words such as "believe", "anticipate", "project", "expect", "intend", "plan", "will", "may", "estimate" and other similar expressions. These statements are based on the Company's expectations, estimates, forecasts and projections and include, without limitation, statements regarding the Company's continued growth strategy, the anticipated effect of the Acquisition on the performance of the Company (including the extent to which the Acquisition is expected to be accretive to adjusted EBITDA and adjusted cash flow and provide strong operating margins), the expected purchase price multiple and CMS Mid-Atlantic's 12 month budgeted EBITDA. The forward-looking statements in this news release are based on certain assumptions, including without limitation that CMS Mid-Atlantic's business will continue its current performance, the Company will be able to retain key CMS Mid-Atlantic personnel, there will be no unexpected expenses occurring as a result of the Acquisition, and that currency exchange rates remain consistent. They are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed under the heading "Risk Factors" in the Company's annual information form available at www.sedar.com. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the Company assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Non-IFRS Measures

EBITDA, adjusted EBITDA and adjusted cash flow are not measures recognized under IFRS and do not have standardized meanings prescribed by IFRS. Such measures are presented in this news release because management of the Company believes that such measures are relevant in interpreting the effect of the Acquisition on the Company. Such measures, as computed by the Company, may differ from similar computations as reported by other similar organizations and, accordingly, may not be comparable to similar measures reported by such other organizations. Please see the Company's most recent management's discussion and analysis for how the Company reconciles such measures to the nearest IFRS measure.

SOURCE Park Lawn Corporation