Sixth-generation family funeral directors Grassby & Sons was established as a stonemason in Dorchester in 1861.
Since branching out into funerals in 1970, the business has expanded organically and through acquisition, and now operates eight funeral directors serving Dorset and East Devon.
Its previous owners – brothers Peter and David Grassby, and David’s son Nick – have now sold the business to Lighthouse Funerals, an investment vehicle of fund manager Downing.
Peter will continue to lead the Grassby business alongside incoming Lighthouse Funerals CEO Steven Wilton, with Nick also taking a senior role in the new group.
PKF Francis Clark advised the Grassbys following approaches from two potential buyers through to successful completion of the deal.
Peter said: “This transaction is a landmark in the history of Grassby & Sons.
“Our partnership with Downing and Lighthouse Funerals will allow us to bring our exceptional level of professional, sympathetic funeral services to more families across the region as we continue to grow.
“Having worked closely with Steve Wilton and the team at Downing throughout this process, I’m confident our family business has found an excellent home for the next chapter of its journey.
“We look forward to continuing to thrive under their stewardship.”
Nick added: “The process itself was an eye-opener – in particular the intensity of the due diligence process and the huge range of commercial, financial and legal issues that needed to be examined and resolved.
“The team at PKF were always available to guide us at every turn, from negotiating initial offers to meet our value aspirations at the outset all the way through the process to completion.
“The level of support was outstanding, and the entire team was a pleasure to work with.”
Chris Potts, corporate finance director at PKF Francis Clark, said: “This was an intense but relatively smooth deal process, delivered to a tight deadline thanks to the hard work and pragmatism of the Grassby family, Downing and all of the advisers involved.
“Having been appointed following receipt of initial offers, through detailed financial analysis and creation of competitive tension we were able to negotiate significant increases in valuations commensurate with the quality of the Grassby business.
“The funerals market remains a fragmented sector which is ripe for a new major player.
“The opportunity to play a pivotal part in Downing’s ambition to grow a high-quality group in the industry was the differentiating factor between the potential buyers, and we look forward to seeing Grassby & Sons playing a key role in the development of Lighthouse Funerals.”
Ed Motley, associate director at Downing, said: “The acquisition of Grassby & Sons, which has a strong financial track record and expert, trusted staff, is an important first step for Lighthouse Funerals.
“We look forward to supporting the management team as they grow the business.”
PKF Francis Clark’s lead advisory team comprised Paul Stout, Chris Potts and Ashley Barton, with tax advice provided by Damian Lannon and Michelle Cordy.
They worked closely with James Driver and Paul Beer at Kennedy Legg, accountants to Grassby & Sons.
Legal advice to Grassby & Sons was provided by Nick Gent, Mark Nixon, Jonathan Sherman, Gerta Xoxi and Bethanie Watson at Trethowans.
Downing was advised by Cooper Parry (financial) and Shoosmiths (legal).
