Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: SCI seeks approval to sell additional mortuaries, funeral homes, cemeteries, (Aug 12, 2014)
Organizations Mentioned:Guerra & Gutierrez, LLC | Miami Memorial, LLC | Service Corporation International | Stewart Enterprises, Inc.
By Greg Hammond, J.D.
Service Corporation International (SCI) has submitted a petition to divest three additional mortuaries in Southern California and five funeral homes and cemeteries in the Miami area to Guerra & Gutierrez, LLC and Miami Memorial, LLC, respectively. The FTC has consequently announced a 30-day public comment period regarding the applications (In the Matter of Service Corporation International, File No. 131 0163, Docket No. C-4423).
According to the Guerra petition, SCI is seeking the Commission’s approval to divest JT Oswald Mortuary, Custer Christiansen Mortuary, and Luyben Family Dilday-Mottell Mortuary to Guerra. In addition, the Miami Memorial petition is seeking the Commission’s approval to divest Funeraria Memorial Plan – San Jose, Funeraria Memorial Plan – Westchester, Branam Funeral Home, Memorial Plan Flagler Memorial Park, and Memorial Plan Miami Memorial Park to Miami Memorial.
The two petitions have been submitted pursuant to a December 2013 decision and order settling charges that SCI’s acquisition of Stewart Enterprises, Inc. would be anticompetitive. The order requires that SCI 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 the $1.4 billion acquisition of Stewart, the second-largest funeral and cemetery provider with 217 funeral homes and 141 cemeteries.
In support of its petitions, SCI asserted that both Guerra and Miami Memorial have extensive experience in acquiring and operating funeral homes and/or cemeteries; have the financial wherewithal to make the acquisitions; and the acquisitions of the businesses in question by the two companies will assure that those businesses remain strong and effective competitors.
Public comments must be received by September 11, 2014. Written comments may be mailed to: FTC Office of the Secretary, 600 Pennsylvania Ave., N.W., Washington, DC 20580. In addition, comments may be filed electronically for both Guerra and Miami Memorial.
Companies: Service Corporation International; Stewart Enterprises, Inc.; Guerra & Gutierrez, LLC; Miami Memorial, LLC
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