Capital Southwest Corporation To Sell Lifemark Group For $84.75 Million To NorthStar Memorial Group

DALLAS, April 30, 2010 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (Nasdaq:CSWC), a provider of long-term equity capital, has entered into a Stock Purchase Agreement with NorthStar Memorial Group, LLC. NorthStar will acquire 100% of the outstanding common stock of Capital Southwest's wholly-owned portfolio company, Lifemark Group, for $84.75 million in cash. 

"Lifemark has been part of the Capital Southwest portfolio since July 1969, when we made our initial investment. As our longest investment holding, Lifemark is an example of how our capital enables management teams to consistently think and act long-term," stated Gary L. Martin, chairman and president of Capital Southwest. "It is in the best interest of our shareholders to pursue this transaction now. The market is ideal for us to use the capital from this sale to invest while the opportunity is high and the availability of alternate funding is low. This allows us to add companies to our portfolio that provide a great long-term benefit and return on investment to our shareholders."

Capital Southwest estimates that $46.2 million of the proceeds will be retained for future investment and $24.4 million will be paid in long-term capital gains tax on behalf of its shareholders. Based on an individual tax rate of 15%, it is estimated individual shareholders will receive a net tax credit of $3.73 per share effective 12/31/2010 from this transaction. The transaction is subject to the approval of the State of California.

"We are pleased to enter into an agreement with Capital Southwest to acquire Lifemark. With careful acquisition management, we have been able to selectively grow the NorthStar family of premier properties," said Mark Hamilton, President and CEO of NorthStar Memorial Group, LLC. "Lifemark's market location is an ideal complement to the already diverse communities we serve and is a perfect fit for our decentralized branding and management philosophy. Lifemark consists of some of the premier cemetery and funeral operations in the United States. As such, it complements NorthStar's premier properties in other states and is an example of NorthStar's commitment to grow through the addition of outstanding funeral and cemetery properties throughout America."