Investment manager Downing enters the funerals sector with its first acquisition and plans to build a national network of funeral directors

Downing has established Lighthouse Funerals, a funeral director’s platform which has completed the acquisition of Grassby & Sons, an established group of funeral directors with a strong reputation 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. Steven is an experienced operator, having worked in the industry for over thirty years.  

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, commented: “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).

Downing's award-winning Development Capital team partners with exceptional management teams to help realise their growth ambitions and maximise the potential of their business by providing flexible funding solutions, strategic support, and access to its networks.

Typically, it looks for initial investment of between £5 million and £50 million and focuses on sectors including healthcare, education, leisure and hospitality, housing, and other specialist sectors.

Downing integrates analysis of ESG factors into its investment decision-making and supports companies to achieve positive outcomes in corporate governance, natural capital and societal factors.

Find out more information about the Downing Development Capital team.

References:

* https://www.ibisworld.com/united-kingdom/market-research-reports/funeral-activities-industry/