Houlihan Lokey announced that Axar Cemetery Merger Corp., a wholly owned subsidiary of Axar Capital Management LP (Axar), has completed a merger with StoneMor Inc., a leading owner and operator of cemeteries and funeral homes. The transaction closed on November 3, 2022.

StoneMor Inc., headquartered in Bensalem, Pennsylvania, is a leading owner and operator of cemeteries and funeral homes in the United States, with 302 cemeteries and 74 funeral homes in 23 states and Puerto Rico. StoneMor’s cemetery products and services, which are sold on both a pre-need (before death) and at-need (at death) basis, include burial lots, lawn and mausoleum crypts, burial vaults, caskets, memorials, and all services that provide for the installation of this merchandise. StoneMor manages over $850 million in trust assets accumulated through the pre-need sales.

Axar is an investment manager focused on value-oriented and opportunistic investing in the North American lower middle market. Axar's investment team pursues opportunities across the capital structure, with core expertise in stressed and distressed credit, special situations, and debt and equity solutions that allow its partners and portfolio companies to realize their long-term value potential.

Houlihan Lokey served as the exclusive financial advisor to Axar. This transaction exemplifies the continued efforts of the Specialty Finance team to leverage existing client relationships to expand their practice to clients with significant financial assets who operate outside of traditional financial services. The transaction also highlights the firm's expertise with respect to SEC Rule 13e-3 concerning going-private transactions for public companies.