Northstar Memorial to buy Lifemark Group from Capital Southwest for $84.8M
By APFriday, April 30, 2010
Northstar Memorial buys Lifemark Group for $84.8M
DALLAS — Investment company Capital Southwest Corp. said Friday it has agreed to sell Lifemark Group, a California cemetery and funeral home operator, for $84.75 million to NorthStar Memorial Group LLC.
Northstar will pay cash to acquire all the stock of Lifemark.
Dallas-based Capital Southwest has owned Lifemark since 1969, but concluded now is the time to sell.
“The market is ideal for us to use the capital from this sale to invest while the opportunity is high and the availability of alternate funding is low,” said Gary Martin, Capital Southwest’s chairman and president. “This allows us to add companies to our portfolio that provide a great long-term benefit and return on investment to our shareholders.”
About $46 million of the proceeds will be retained for future investment and $24 million will be paid in long-term capital gains tax on behalf of its shareholders.
Lifemark Group is based in Hayward, Calif. It owns and operates properties in San Mateo, Oakland, Hayward and Sacramento.
NorthStar Memorial Group, a privately held funeral and cemetery owner based in Houston, has properties in six states.
Southwest Capital shares fell 89 cents to close at $94.05.
