Service Corp. International, a nationwide operator of funeral homes and cemeteries with Akron- and Canton-area operations, has agreed to buy Stewart Enterprises Inc. in a deal valued at $1.4 billion.
Service Corp., based in Houston, Texas, owns the Dignity network of funeral homes, including Rose Hill Burial Park in Fairlawn and Catavolos Funeral home in Bath Township.
Stewart Enterprises, based in Louisiana, runs funeral homes in 24 states and employs 5,000 people, according to its website. It has no local funeral homes.
The combination of Service Corp. and Stewart Enterprises is expected to have pro forma revenue of almost $3 billion and generate about $60 million in annual cost savings, the companies said Wednesday.
Locally, Service Corp.’s Dignity network of funeral homes and cemeteries also includes the Wood-Kortright-Borkoski Funeral Home in Ravenna; Sunset Hills Memory Gardens and Karlo-Libby Funeral Home in Jackson Township; and Forest Hill Cemetery in Canton.
Service Corp.’s purchase offer of $13.25 a share is 36 percent more than Stewart Enterprises’ closing price Tuesday. The acquisition has been approved by the boards of both companies, according to a statement Wednesday.
Shares of Stewart Enterprises rose about 34 percent to $13.03 early Wednesday and stayed at that level through trading as of 1 p.m. Service Corp. shares climbed more than 5 percent to $18.52 as of 1 p.m. Wednesday.
Service Corp. owned and operated 1,437 funeral homes and 374 cemeteries in 43 states, including Ohio, as of March 31.
Beacon Journal business writer Katie Byard contributed to this report.