Propel Funeral Partners Limited (ASX: PFP) have just announced to the ASX that it has executed a conditional sale agreement to acquire the entire issued capital of Morleys Funerals Pty Ltd, its associated businesses (together, the Morleys Group) and certain freehold properties for 14.3m.
Established in 1961 and currently a fourth generation family business, the Morleys Group operates from six locations, is the largest funeral services provider in Townsville, North Queensland and has historically performed a total of approximately 900 funerals per annum.
Who are Propel Funeral Partners?
Propel Funeral Partners is listed on the Australian Stock Exchange and is the second largest private provider of death care services in Australia and New Zealand. Propel performed over 10,000 funeral services in FY18 and currently operates from 109 locations, including 25 cremation facilities and 8 cemeteries. It’s other recent acquisitions include Seasons Funerals in Western Australia and Norwood Park in New South Wales, Newhaven Funerals in Queensland.
What does this mean for consumers?
eziFunerals holds grave concerns for consumers as Australia’s biggest undertakers just keep getting bigger. The funeral industry in Australia is currently estimated to be $1.1 billion and is currently dominated by two ASX listed companies, InvoCare and Propel Funeral Partners.
These big chains are reporting higher and higher profits as they continue to increase their footprint and buy out small operators to increase their market share at the expense of consumers and the small independent funeral directors.
eziFunerals Founder, Peter Erceg has raised ongoing concerns about the ongoing battle between InvoCare and Propel Funeral Partners in the race to expand their share of the ‘death care industry’. “This may be good news for shareholders, but not for consumers and independent funeral homes”, he said.
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About eziFunerals
eziFunerals supports individuals and families cope with end of life decisions, death and funerals. We are an independent, Australian-owned and operated company, and are not a subsidiary of any other corporation. We are not part of any other funeral company. Founded by consumers frustrated by how difficult it was to get independent information, eziFunerals supports consumers plan a funeral, compare prices and select the right funeral director anywhere, anytime.