Capital Southwest closes deal to sell Lifemark Group to NorthStar Memorial for $84.8M
By APFriday, June 11, 2010
Capital Southwest sells Lifemark Group for $84.8M
DALLAS — Investment company Capital Southwest Corp. said it has closed its sale of Lifemark Group, a California cemetery and funeral home operator, for $84.7 million to NorthStar Memorial Group LLC.
The deal for the sale was signed on April 29. Dallas-based Capital Southwest said Thursday that it estimates that $46.2 million of the proceeds will remain and be retained by the company for future investment and $24.4 million will be paid in long-term capital gains tax credit on behalf of its shareholders.
About $46 million of the proceeds will be retained for future investment and $24 million will be paid in long-term capital gains tax on behalf of its shareholders. Based on an individual tax rate of 15 percent it estimates individual shareholders will receive a net tax credit of $3.73 per share at the end of the year.
Lifemark Group is based in Hayward, Calif. It owns and operates properties in San Mateo, Oakland, Hayward and Sacramento.
NorthStar Memorial Group, a privately held funeral and cemetery owner based in Houston, has properties in six states.
Southwest Capital shares rose 4 cents to close Friday at $86.90.
Tags: California, Dallas, Hayward, North America, Texas, United States