Rumbu completes acquisition of Warren & Son

Executive Summary

• Rumbu Holdings Ltd. has completed the acquisition of Warren & Son Ltd., a funeral home business located in Swift Current, Saskatchewan.
• The transaction was funded through a combination of existing lending facilities with the Bank of Montreal and the issuance of promissory notes to the vendors.
• Rumbu intends to retain current staff and continue operations, aligning with its strategy to assist funeral home owners in transitioning businesses to employees or aspiring directors in rural and mid-market communities.

Key Details

• Transaction Structure: Acquisition of all issued shares of Warren & Son Ltd.
• Target Business: Warren & Son Ltd., a funeral home located in Swift Current, Sask.
• Consideration & Funding:
  • Funds sourced from a previously announced lending facility with the Bank of Montreal.
  • Issuance of promissory notes to vendors in the aggregate amount of $500,000.
• Promissory Note Terms: Repayable in five years from the closing date.
• Working Capital: The sale agreement includes a conventional adjustment of working capital after closing.
• Operational Impact: Rumbu has retained most of the current staff of Warren & Son and will continue to operate the acquired funeral home.
• Related Party Status: The acquisition is neither a non-arm's-length nor a related party transaction.
• Strategic Context: The acquisition supports Rumbu's plan to lead the transition of funeral home businesses to current employees or aspiring directors in rural or mid-market communities to maintain continuity and service quality.

Notable Quotes

• "The company plans to lead the way in assisting funeral home owners to transition their businesses to current employees or aspiring funeral home directors who are looking to operate in rural or mid market communities. This will allow Rumbu to maintain continuity and continue to provide quality funeral services in these communities."