Propel Funeral Partners, a key player on the Australian Securities Exchange (ASX), is further expanding its footprint by acquiring Southern Funeral Home for more than AUD 4 million (around NZD 4.2 million). This acquisition, announced earlier this week, is part of Propel’s ambitious expansion strategy, adding to its significant portfolio of death-care services across Australia and New Zealand.
Southern Funeral Home operates out of five locations, including a cremation facility in Gore, Cromwell, Alexandra, and Queenstown. This acquisition is Propel’s eighth for the fiscal year, highlighting its aggressive growth in the sector.
Background of Southern Funeral Home traces to Graham and Heather Stephen who, in 1996, repurposed a Gore property intended for a motel into a funeral home. The operation grew to include a chapel and facilities for after-service gatherings by 2004. In 2008, the acquisition of Hammond Funeral Services led to the rebranding to Southern Funeral Home. They conducted about 270 funerals in its last financial year.
Recent Acquisitions: In May, Propel expanded its portfolio with the purchase of J Fraser & Sons and Winton and District Funeral Services in Southland, and in February, acquired Seddon Park Funeral Home (Sadliers Funeral Services) in Hamilton and Morrinsville, along with Auckland’s Pets at Rest. Propel’s strategy focuses on acquiring independent operators in both New Zealand and Australia, holding a diverse portfolio including Far North Funeral Services, Far North Memorial Gardens, Davis Funerals Limited, and many others.
The funeral and death care services sector in New Zealand is largely dominated by two Australian companies: Propel and Sydney-based InvoCare. Propel reported a turnover of $145.2 million in the 2022 financial year, conducting 16,500 funerals across 144 sites, 65 of which are leased. In comparison, InvoCare operates 24 funeral home and crematorium brands across New Zealand.