Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: FTC approves divestiture of 19 SCI funeral home, cemetery assets, (Aug 13, 2014)
Organizations Mentioned:Hillcrest Memorial Association MD, Inc. | Legacy Funeral Holdings of Alabama LLC | NorthStar Memorial Group, LLC | Parkwood Memorial Association, Inc. | Pleasant View Memorial Association, Inc. | Pleasant View Memory Gardens, Inc. | Service Corporation International | Stewart Enterprises, Inc.
By Greg Hammond, J.D.
The FTC has approved four Service Corporation International (SCI) applications to divest certain funeral home and cemetery assets to Hillcrest Memorial Association MD, Inc., Pleasant View Memorial Association, Inc., Parkwood Memorial Association, Inc., NorthStar Memorial Group, LLC, and Legacy Funeral Holdings of Alabama LLC, pursuant to a proposed order settling charges that SCI’s acquisition of Stewart Enterprises, Inc. would be anticompetitive (In re Matter of Service Corporation International, File No. 131-0163, Docket No. C-4423).
Previously, SCI settled anticompetitive FTC charges by agreeing to divest 53 funeral homes and 38 cemeteries to ensure funeral home and cemetery services competition is maintained across the United States. SCI was already the largest provider of funeral and cemetery services when it proposed a $1.4 billion acquisition of Stewart, the second-largest funeral and cemetery provider with 217 funeral homes and 141 cemeteries.
The Commission approved SCI’s applications after a 30-day public comment period, allowing the company to divest the following assets:
Pursuant to an April 30, 2014 application—Hillcrest Memorial Gardens in Annapolis Maryland, to Hillcrest Memorial Association MD, Inc.; and Pleasant View Memory Gardens in Kearneysville, West Virginia, to Pleasant View Memorial Association, Inc.;
Pursuant to a May 7, 2014 application—15 funeral home and cemetery assets in California, Florida, and Texas to NorthStar Memorial Group, LLC;
Pursuant to a May 29, 2014 application—Mobile Memorial Gardens Funeral Home in Mobile, Alabama, to Legacy Funeral Holdings of Alabama, LLC; and
Pursuant to a June 10, 2014 application—Parkwood Cemetery in Baltimore, Maryland, to Parkwood Memorial Association, Inc.
The Commission voted 5-0 to approve SCI’s applications to divest these assets.
Companies: Service Corporation International; Stewart Enterprises, Inc.; Hillcrest Memorial Association MD, Inc.; Pleasant View Memorial Association, Inc.; Parkwood Memorial Association, Inc.; NorthStar Memorial Group, LLC; Legacy Funeral Holdings of Alabama LLC
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