Service Corporation International Announces Completion Of Acquisition Of
Stewart Enterprises, Inc.
HOUSTON, Texas, Dec. 23, 2013
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."
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
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)
SOURCE Service Corporation International
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