Antitrust Law Daily Wrap Up, ANTITRUST NEWS: FTC seeks public comments on additional Service Corporation International application to sell funeral assets, (May 9, 2014)

The FTC announced today that the agency is seeking public comments on an application by Service Corporation International (SCI), the nation’s largest provider of funeral and cemetery services, to sell certain funeral and cremation assets. The proposed sale would be pursuant to the FTC’s December 2013 proposed order settling charges that SCI's $1.4 billion acquisition of Stewart Enterprises, Inc. would likely substantially lessen competition. In total, the proposed settlement requires the combined SCI/Stewart to divest 53 funeral homes and 38 cemeteries to ensure that competition is maintained in 59 communities throughout the United States.

In the current application, SCI has petitioned the FTC to approve the divestiture of the following funeral home and cemetery assets to NorthStar Memorial Group, LLC (NorthStar):

• Clairemont Mortuary in San Diego, California;

• Greenwood Memorial Park Crematory in San Diego, California;

• Greenwood Memorial Park & Mortuary in San Diego, California;

• Greenwood Memorial Park in San Diego, California;

• Moss Feaster Funeral Home and Cremation Services in Clearwater, Florida;

• Moss Feaster Funeral Home and Cremation Services in Dunedin, Florida;

• Woodlawn Memory Gardens in St. Petersburg, Florida;

• Memorial Park Funeral Home & Cemetery in St. Petersburg, Florida;

• Grace Memorial Gardens and Funeral Home in Hudson, Florida;

• Boza & Roel Funeral Home in Tampa, Florida;

• Sunset Funeral Home and Memory Gardens in Thonotosassa, Florida;

• South Park Funeral Home and Cemetery in Pearland, Texas;

• San Jacinto Memorial Park and Funeral Home in Houston, Texas;

• Restland Cemetery in Dallas, Texas; and

• Restland Funeral Home in Dallas, Texas.

According to SCI’s application, NorthStar will be a strong and effective competitor in the local markets, and has the expertise to successfully operate the businesses it plans to acquire.

In its complaint (In re Matter of Service Corporation International, Docket No. C-4423, File No. 131-0163), the FTC charged that SCI’s proposed acquisition of Stewart, if consummated, was likely to substantially reduce the competition for funeral and cemetery services in local markets identified by the agency, in violation of Section 7 of the Clayton Act and Section 5 of the FTC Act. The complaint alleged that each of the local markets for funeral and cemetery services was highly concentrated and that the merger as proposed would eliminate direct competition between the companies.

The proposed order to settle the FTC charges required the combined SCI/Stewart company to divest 53 funeral homes and 38 cemeteries in 59 communities throughout the United States. The required divestitures to ensure consumer in the affected communities would continue to have access to competitive funeral and cemetery services.

Public comments may be submitted until June 9, 2014. Written comments should be sent to: FTC Office of the Secretary, 600 Pennsylvania Ave., N.W., Washington, DC 20580. Comments can also be submitted electronically.

Companies: Service Corporation International; Stewart Enterprises, Inc.; NorthStar Memorial Group, LLC

News: Antitrust FederalTradeCommissionNews