HOUSTON, Texas, Dec. 23, 2013 /PRNewswire/ -- Service
Corporation International (NYSE: SCI) announced that today it has
completed its acquisition of Stewart Enterprises, Inc. (Nasdaq GS:
STEI). Under the terms of the merger agreement, each outstanding
share of Stewarts' common stock has been converted into the right
to receive $13.25 in cash. As a
result of the acquisition, the common stock of Stewart will cease
to be publicly traded and will no longer be listed on the Nasdaq
Stock Market.
"This is an exciting day for our company and the work we have
done over the past several months positions us well to successfully
integrate the two companies," said Tom
Ryan, President and Chief Executive Officer. "I would
like to welcome the Stewart employees and thank the employees of
both companies for their dedication and professionalism during this
transition period," continued Mr. Ryan. "Together, as we look to
the future by focusing on continuous operating improvement while
enhancing our customer experience and deploying capital
responsibly, we believe that we can continue to create value for
our customers and our shareholders."
The acquisition was completed following SCI's agreement with the
U.S. Federal Trade Commission (the "FTC") to the entry of a consent
decree and an Order to Hold Separate and Maintain Assets which has
been accepted by the FTC for public comment. The consent
decree requires SCI to divest certain Stewart and SCI assets. These
assets include 91 locations with 2012 EBITDA of approximately
$53 million. SCI has commenced
discussions with potential buyers and expects to complete all
divestitures within the six month time period required by the
consent decree. Buyer interest in the divestiture assets
continues to be robust.
Mr. Ryan concluded, "We are pleased to have reached a mutually
satisfactory agreement with the FTC that permitted us to complete
this highly beneficial transaction for SCI and its
shareholders."
Forward-Looking Statements
Certain statements contained in this press release regarding
expected future events, as well as certain information in other
filings with the Securities and Exchange Commission ("SEC") and
elsewhere, are forward-looking statements within the meaning of
Section 27A(i) of the Securities Act of 1933 and Section 21E(i) of
the Securities Exchange Act of 1934. The words "believe," "will,"
"continue," "expect" and similar expressions identify these
forward-looking statements. These forward-looking statements are
based on the current expectations and beliefs of SCI management and
are subject to certain risks and uncertainties that could cause
actual results to differ materially from those stated, including,
but not limited to, various uncertainties associated with the
funeral service industry in general and Stewart's and SCI's
operations in particular; the risk that the businesses will not be
integrated successfully; the risk that the cost savings and any
other synergies from the transaction may not be fully realized or
may take longer to realize than expected; the risk that planned
divestitures may take longer than expected, or that the net
proceeds from any divestitures may be less than anticipated; and
disruption from the transaction making it more difficult to
maintain relationships with customers, employees or suppliers.
Additional factors that may affect future results are contained in
Stewart's and SCI's periodic reports filed with the SEC, especially
under the headings "Forward-Looking Statements" and "Risk Factors."
SCI undertakes no obligation to publicly release any revisions to
these forward-looking statements to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated
events.
About Service Corporation International
Service Corporation International (NYSE: SCI), headquartered in
Houston, Texas, is North America's leading provider of deathcare
products and services. After giving effect to the acquisition and
related transactions, we will own and operate 1,595 funeral homes
and 477 cemeteries (of which 262 are combination locations) in 43
states, eight Canadian provinces, the District of Columbia, and Puerto Rico.
Through our businesses, we market the Dignity Memorial® brand
which offers assurance of quality, value, caring service, and
exceptional customer satisfaction. For more information about
Service Corporation International, please visit our website at
www.sci-corp.com. For more information about Dignity Memorial®,
please visit www.dignitymemorial.com.
For Additional Information
Contact
Investors: Debbie Young –
Director of Investor Relations (713) 525-9088
Media: Lisa Marshall –
Managing Director/Corporate
Communications (713) 525-3066
SOURCE Service Corporation International