Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: SCI seeks approval to sell two more cemeteries in Knoxville, (Aug 1, 2014)
Organizations Mentioned:Alliance Funeral Group, Inc. | Service Corporation International | Stewart Enterprises, Inc.
By Greg Hammond, J.D.
Service Corporation International (SCI) has submitted a petition to sell two additional cemeteries in Knoxville, Tennessee, to Alliance Funeral Group Inc. The FTC has consequently announced a 30-day public comment period regarding the application (In the Matter of Service Corporation International, File No. 131 0163, Docket No. C-4423).
According to the petition, SCI is seeking the Commission’s approval of the divestiture of Greenwood Cemetery and New Gray Cemetery to Alliance, pursuant to a December 2013 proposed order settling charges that SCI’s acquisition of Stewart Enterprises, Inc. would be anticompetitive. The proposed 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 petition, SCI asserted that “Alliance has extensive experience in acquiring and operating cemeteries, has the financial wherewithal to make this acquisition, and the acquisition of the businesses in question by Alliance will assure that those businesses remain strong and effective competitors in Knoxville, Tennessee in this matter.”
Public comments must be received by September 2, 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 here.
Companies: Service Corporation International; Stewart Enterprises, Inc.; Alliance Funeral Group, Inc.
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