Funeral firm in sale deal

F O U R T H - G E N E R A - Tionfamily business the Morleys Group has entered into a conditional sale agreement with the second largest provider of death care services in Australia and New Zealand, valuing the Townsville business at around $14.3 million.

Propel Funeral Partners announced the agreement this week.

Propel managing director Albin Kurti said they had long admired the Morleys Group.

“Not only is it the leading provider of funeral services in Townsville, the Morley family is highly respected within the Australian funeral industry,” Mr Kurti said.

“We are honoured that managing director Ray Valdeter and the Morley family have chosen to partner with us.”

Mr Valdeter, along with other family members, will continue to be involved in the business and will take a future shareholding in Propel.

Mr Valdeter said the transaction was a vote of confidence in Townsville.

He said the Morleys Group would continue to support the local economy and local sponsorships, charitable and community support.

“This strategic partnership with Propel will enable us to enjoy some of the fruits of our labour and still allow us to continue to operate the business, ensuring the Morley Group’s level of service and traditional values will continue for the community of Townsville, which is a great outcome,” Mr Valdeter said.

“The Morley family has invested heavily in Townsville for more than half a century and this partnership will enable us to continue our unique services to the community and broaden our in- vestment base in Townsville.”

Established in 1961, the Morleys Group operates from six locations, is the largest funeral services provider in Townsville and, historically, has performed about 900 funerals a year.

As part of the transaction, Propel will also acquire Fitzgerald’s Funerals, Woongarra Crematorium and Memorial Gardens, pet cremation and cemetery business Pet Heaven NQ, two freehold properties and have an option to acquire one of four leasehold properties.

The Morleys family has retained ownership of The Lakes Funeral Home.

The purchase price, payable on completion of the transaction, will comprise $13.3 million in cash and 344,828 ordinary shares in Propel to be issued at $2.90 each and subject to a threeyear escrow arrangement.

The proposed transaction is expected to be completed before June 30.