-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OmEtGyJTMLcCschN4gULaCB0z/sup8cNIYJpcs+9A/r0kn2QlI6C+vuEPG43YEmM PsIKRADMOFz9XXwTkLB5CQ== 0001144204-09-053035.txt : 20091015 0001144204-09-053035.hdr.sgml : 20091015 20091015080855 ACCESSION NUMBER: 0001144204-09-053035 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20091015 ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20091015 DATE AS OF CHANGE: 20091015 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SERVICE CORPORATION INTERNATIONAL CENTRAL INDEX KEY: 0000089089 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PERSONAL SERVICES [7200] IRS NUMBER: 741488375 STATE OF INCORPORATION: TX FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-06402 FILM NUMBER: 091120393 BUSINESS ADDRESS: STREET 1: 1929 ALLEN PKWY STREET 2: P O BOX 130548 CITY: HOUSTON STATE: TX ZIP: 77019 BUSINESS PHONE: 7135225141 MAIL ADDRESS: STREET 1: P O BOX 130548 CITY: HOUSTON STATE: TX ZIP: 77219-0548 8-K 1 v162877_8k.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) October 15, 2009 (October 15, 2009) Service Corporation International - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Texas 1-6402-1 74-1488375 - -------------------------------------------------------------------------------- (State or other jurisdiction (Commission (I.R.S. Employer of incorporation) File Number) Identification No.) 1929 Allen Parkway Houston, Texas 77019 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (713) 522-5141 - -------------------------------------------------------------------------------- (Former name or former address, if changed since last report.) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: |_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13a-4(c)) Item 8.01 Other Events On October 15, 2009, Service Corporation International ("SCI") issued a press release announcing that SCI has entered into a definitive agreement to acquire Keystone North America Inc. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated herein by reference. Item 9.01 Financial Statements and Exhibits (d) Attached hereto as Exhibit 99.1 is a copy of Service Corporation International's press release. 99.1 Press Release, dated October 15, 2009 Signature Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. October 15, 2009 Service Corporation International By: /s/ Eric D. Tanzberger ------------------------------------- Eric D. Tanzberger Senior Vice President Chief Financial Officer and Treasurer EX-99.1 2 v162877_ex99-1.txt Service Corporation International Announces Support Agreement With Keystone North America Inc. HOUSTON, Oct. 15 /PRNewswire-FirstCall/ -- Service Corporation International (NYSE: SCI), which owns and operates funeral service locations and cemeteries, today announced the execution of a definitive support agreement with Keystone North America Inc. "Keystone." Under the terms of the agreement, SCI has agreed to offer to purchase all the outstanding common shares of Keystone, including those represented by income participating securities, at C$8.00 per share, for a total estimated transaction value of approximately $256 million (including Keystone's outstanding debt). The offer price represents a 38% premium to Keystone's most recent 50-day average share price and is conditioned upon, among other things, the tender of at least two-thirds of the outstanding shares of Keystone's common shares, calculated on a fully diluted basis. The Boards of Directors of both companies have unanimously approved the transaction. The transaction is anticipated to close in the first quarter of 2010, subject to customary closing conditions, including expiration of the waiting period under the Hart-Scott-Rodino Antitrust Act. SCI has substantial cash on hand which will be used in the transaction and has also received a commitment letter from JPMorgan Chase Bank, N.A. and Bank of America, N.A. for a $250 million bridge facility. SCI believes that it has a number of debt capital market alternatives and will determine the optimal funding structure consisting of a combination of long-term permanent debt and short-term pre-payable debt prior to the close of the transaction. Upon closing, the transaction is expected to be immediately accretive to SCI's cash flow and earnings in 2010. SCI, headquartered in Houston, Texas is North America's leading provider of death-care products and services. At June 30, 2009, SCI owned and operated 1,264 funeral homes and 365 cemeteries in 43 states, eight Canadian provinces, the District of Columbia and Puerto Rico. Keystone, headquartered in Tampa, Florida is North America's 5th largest provider of death-care products and services with 199 funeral homes and 15 cemeteries operating in 31 states and the Province of Ontario, focusing specifically on the small to mid-size markets. "Our current portfolio has over 300 similarly positioned businesses which consistently generate solid margins and predictable cash flows," said SCI President and CEO Tom Ryan. "We believe the opportunity to nearly double our presence in this attractive segment through an accretive transaction will generate significant value for our shareholders." "The migration of the Baby-Boomer generation to suburban and rural areas over the coming years will represent a significant opportunity for growth," added SCI Executive Vice President and Chief Operating Officer Mike Webb. "This transaction and the addition of key members of the Keystone Management team, including President and CEO Steve Tidwell, will position us as the unparalleled leader in this market with over 500 businesses, generating more than $350 million in revenues and serving over 68,000 families per year." Keystone President and CEO Steve Tidwell stated, "Clearly the potential of this business combination is compelling. With this enhanced operating platform and the combined talent of our two organizations, we believe we can grow this business segment organically and through strategic acquisitions at very reasonable prices, further leveraging our scale in pursuit of customers that value our services." "As demonstrated with our purchase of Alderwoods in 2006, we have a proven capability of successfully integrating large acquisitions," concluded Ryan. "I applaud the SCI team and thank them in advance for their efforts." BMO Capital Markets acted as exclusive financial advisor to Keystone. J.P. Morgan Securities Inc. served as exclusive advisor to SCI. FORWARD-LOOKING STATEMENTS Information set forth in this release contains forward-looking statements, which involve a number of risks and uncertainties. SCI cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information. Such forward-looking statements include, but are not limited to, statements about the benefits of the business combination transaction involving SCI and Keystone, including future financial and operating results, the anticipated timing of the closing of the transaction, the combined company's plans, objectives, expectations and intentions and other statements that are not historical facts. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: the ability to obtain regulatory approvals of the transaction on the proposed terms and schedule; the failure to achieve the minimum tender condition in the tender offer; the risk that the businesses will not be integrated successfully; the risk that the cost savings and any other synergies from the transaction may not be fully realized or may take longer to realize than expected; disruption from the transaction making it more difficult to maintain relationships with customers, employees or suppliers. Additional factors that may affect future results are contained in SCI's filings with the SEC, which are available at SCI's website www.sci-corp.com or at the SEC's web site www.sec.gov. SCI disclaims any obligation to update and revise statements contained in these materials based on new information or otherwise, except as required by applicable law. IMPORTANT ADDITIONAL INFORMATION A take-over bid circular containing the terms of the offer will be mailed to Keystone shareholders, together with Keystone's directors' circular unanimously recommending acceptance of the offer, on or before November 16, 2009. Once mailed, these documents will also be available on SEDAR at www.sedar.com. The offer will be open for acceptance for at least 36 days (subject to any extension) and will be conditional upon, among other things, at least two-thirds of the outstanding shares of Keystone (on a fully diluted basis) being validly deposited under the tender offer and not withdrawn. In addition, the offer will also be subject to other customary conditions, including the receipt of regulatory approvals. The Support Agreement entered into between SCI and Keystone provides for, among other things, a non-solicitation covenant on the part of Keystone, customary "fiduciary out" provisions which entitle Keystone to consider and accept a superior proposal, SCI's right to match and the payment to SCI of a break fee in an amount and in circumstances that is typical for a transaction of this nature. For additional information contact: Service Corporation International Investors: Debbie Young - Director / Investor Relations (713) 525-9088 Media: Lisa Marshall - Managing Director / Corporate Communications (713) 525-3066 CONTACT: Investors, Debbie Young - Director / Investor Relations, +1-713-525-9088, or Media, Lisa Marshall - Managing Director / Corporate Communications, +1-713-525-3066, both of Service Corporation International -----END PRIVACY-ENHANCED MESSAGE-----