InvoCare Limited (ASX: IVC) shares are up 0.4% after announcing its latest acquisition.
InvoCare is the largest provider of funeral services in Australia, New Zealand and Singapore. It operates at 290 funeral locations. It is also the largest operator of private cemeteries and crematoria in Australia. The name stores for innovation, vocation and care. Some of its national brands includes White Lady Funerals, Simplicity Funerals and Value Cremations.
InvoCare’s Latest Acquisition
The funeral business revealed that it is acquiring Australian Heritage Funerals, which is located in Toowoomba, Queensland and is expected to complete by the end of July 2019.
InvoCare described Australian Heritage Funerals as a highly successful business in the region, performing around 300 funerals per year and it generates annual revenue of approximately $2 million.
The business has been running since 1998 when it was set up by the McGrath-Colquhoun family and is managed by Judith McGrath-Colquhoun who will continue to serve in the business.
The acquisition includes a long term lease over the existing funeral home, mortuary and chapel. The facilities will also be used to support InvoCare’s current businesses in the Toowoomba region which includes Hiram Philp Funerals and the Toowoomba Garden of Remembrance memorial park.
InvoCare CEO and Managing Director Martin Earp said: “InvoCare through the Toowoomba Garden of Remembrance has enjoyed a very productive working relationship with the Australian Heritage Funerals team and have met the needs of a large number of Toowoomba families over very many years.”
Is InvoCare A Buy?
According to CommSec, InvoCare is valued at 29 times the 2020 Financial Year’s estimated earnings. The ageing population of Australia is a strong tailwind for InvoCare – we all die after all. But it might be too expensive for a good value buy today, even with its clever strategies of regional expansion and revamping its metro locations.
It might be a better idea to buy shares of the reliable businesses in the free report below which could be better value.
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Disclosure: Jaz owns shares of Invocare at the time of writing, but this could change at any time.
