Park Lawn Corporation (TSX)(TSX.U) announced it entered into an arrangement agreement with Viridian Acquisition Inc., an affiliate of Homesteaders Life Company and Birch Hill Equity Partners. Under this agreement, Viridian will acquire all outstanding common shares of Park Lawn for $26.50 per share in an all-cash transaction valued at approximately $1.2 billion, including Park Lawn’s net debt. This offer represents a 62.1% premium to the closing price of Park Lawn shares on June 3, 2024.

The transaction received unanimous approval from Park Lawn’s Board of Directors and a special committee of independent directors, supported by legal and financial advice. National Bank Financial provided a fairness opinion, deeming the transaction fair from a financial perspective.

Legal advisors for the Special Committee and Park Lawn were Bennett Jones LLP and Morgan, Lewis & Bockius LLP. BMO Capital Markets acted as the financial advisor for the purchaser, with Torys LLP, Faegre Drinker Biddle & Reath LLP, and Paul Weiss Rifkind Wharton & Garrison LLP serving as legal advisors for Homesteaders. Stikeman Elliott LLP advised Birch Hill.

The transaction is subject to customary conditions, including court and regulatory approvals, and is expected to close by August 2024. Upon completion, Park Lawn shares will be delisted from the Toronto Stock Exchange.