Investment manager Downing enters funerals sector with first acquisition
Downing has established Lighthouse Funerals, a funeral director’s platform which has completed the acquisition of Grassby & Sons, an established group of funeral directors across Dorset and Devon.
The group currently operates eight funeral directors and a separate masonry business. Grassby & Sons is Lighthouse Funerals’ cornerstone investment from which Downing plans to build a national network of funeral directors.
Grassby & Sons, based in Dorchester, Dorset, was founded as a funeral director in 1970 and the Grassby family has been a well-known stonemason in the region since the late 19th century.
The business is owned by brothers Peter and David Grassby and David’s son Nick, with Peter and Nick running the business. Nick and Peter will remain with the business following the acquisition and will work closely with the incoming CEO Steven Wilton.
Downing is investing in the funerals sector as it is a growing, resilient but highly-fragmented market that it believes will benefit from consolidation. Funeral directors are the lynchpin of the funerals industry and play a crucial societal role. Many funeral director businesses are family-owned and have built strong reputations in their local communities over generations.
Funeral industry revenue has grown at a CAGR of 5.3 % over the past five years, to reach an estimated £2.8bn in 2024. As the UK population continues to age, demand for funeral services will increase.
Torsten Mack, investment director, Downing, said: “We are excited about having established Lighthouse Funerals as a new portfolio company and look forward to working closely with Steven Wilton, the CEO, to develop a national network of funeral directors.”
Ed Motley, associate director, 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 and we look forward to supporting the management team as they grow the business.”
Steven Wilton, CEO of Lighthouse Funerals added: “Grassby & Sons has provided high-quality, compassionate care to grieving families across Dorset and Devon for decades and it is a privilege to work alongside them and their exceptional team as we move forward together. I look forward to continued collaboration with Downing as we unite like-minded funeral directors, working together to continue offering the highest levels of care and support to the families we serve.”
Downing was advised by Shoosmiths (Legal), Cooper Parry (Financial and Tax), CIL (Commercial), GK Strategy (Political) and Knight Frank (Valuation Services).
