Prime Acquisition Group
In a series of simultaneous transactions, Prime Acquisition Group, LLC (PAG), an affiliated investment vehicle of Atlantic American, acquired and sold approximately 95 funeral homes and 18 cemeteries that were acquired from Prime Succession, Inc. in a Chapter 11 Section 363 sale transaction valued at over $253 million (including assumption of approximately $180 million in liabilities). In reselling the assets, the group kept ownership of most of the real estate supporting the funeral home operations and leased the properties to the new owners.
The transaction brought to an end the story of a funeral home “roll-up” started in 1992 by private equity firm, Golder, Toma, Cressey & Rauner. After acquiring approximately 150 funeral homes, Golder, Toma sold the Company to a partnership comprised of one of the country’s largest funeral home operators, The Loewen Group and the Manhattan-based private equity firm, The Blackstone Group.
The transaction was challenging due to several factors, including regulatory aspects of the death care industry, the fact that the Company was in bankruptcy and PAG’s desire to simultaneously sell all of the businesses.