PROPEL FUNERAL PARTNERS LIMITED — M&A Activity 2017

Dec 12, 2017

ASX ANNOUNCEMENT

13 December 2017

Acquisition of Brindley Group

Propel Funeral Partners Ltd (ASX: PFP) ( Propel ) is pleased to announce it has executed a sale agreement to acquire the funeral businesses, assets and certain freehold properties from Brindley Group Pty Ltd and its associated entities ( Brindley Group ).

Subject to satisfaction (or waiver) of customary conditions relating to matters such as consents to the assignment of key contracts and confirmatory due diligence, the proposed acquisition is expected to be completed by 31 March 2018.

Brindley Group conducts approximately 1,350 funerals per annum and operates from 19 locations in New South Wales (including 2 crematoria) and Victoria under various brands, including:

• John Hossack Funerals;

• Conway Funeral Home;

• William R. Groves Funeral Directors;

• White Dove Funerals;

• Parkview Funeral Home;

• McGuiness Funerals; and

• Acacia Funerals.

As part of the proposed transaction, Propel will acquire 4 freehold properties and will lease 15 properties, with options to acquire 4 of those leasehold properties during the next 3 financial years.

Propel’s Managing Director, Albin Kurti, said “We are delighted to announce Propel’s first acquisition following the recent IPO. The proposed acquisition will expand Propel’s geographic footprint in New South Wales and Victoria, broaden our brand portfolio and increase our annual funeral volumes by approximately 13%”.

The founder of Brindley Group, Ross Brindley, intends to continue in an advisory capacity with Propel and said “I’ve been thinking carefully about how best to position Brindley Group for continued growth for some time and it’s a decision I haven’t taken lightly. Over the last 5 years, I’ve spent time getting to know Albin and the Propel team and I’m pleased that our staff will be joining a supportive and growing funeral operator”.

“We look forward to welcoming the staff at Brindley Group to Propel”, Mr Kurti added.

Brindley Group generated revenue of approximately $11 million in FY2017 and the proposed acquisition is expected to be accretive to Propel’s earnings in year one.

Propel intends to fund the proposed transaction from cash reserves.

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ASX ANNOUNCEMENT

About Propel:

Propel is listed on the Australian Stock Exchange and is the second largest provider of death care services in Australia and New Zealand. Propel currently operates from 80 locations, including 19 crematoria and 5 cemeteries.

For further information, please contact:

Lilli Gladstone Head of Finance + 612 8514 8644

Important notice:

This announcement may contain forward-looking statements, which include all matters that are not historical facts. Without limitation, indications of, and guidance on, future earnings and financial position and performance are examples of forwardlooking statements. Forward-looking statements, including projections or guidance on future earnings and estimates, are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. No representation, warranty or assurance (express or implied) is given or made in relation to any forward-looking statement by any person (including Propel). In particular, no representation, warranty or assurance (express or implied) is given that the occurrence of the events expressed or implied in any forward-looking statements in this announcement will actually occur. Actual results, performance or achievement may vary materially from any projections and forward-looking statements and the assumptions on which those statements are based.