3i to buy Spanish and Portuguese funeral chain

Madrid-based infrastructure and real estate developer Accion is selling a 75 percent stake in its funeral services company, valuing the business at €330m.

3i is taking control of Mémora Inversiones Funerarias, a division of Spanish conglomerate Accion, in a deal that values the funeral services chain at €330 million ($484 million).

Expected to close on 17 November, the deal gives 3i a 75 percent stake in Mémora, according to a filing with Spanish stock market regulator Comisión Nacional del Mercado de Valores.

3i is investing an undisclosed sum from its Eurofund V, which held its final close in November 2006 on €5 billion.

Mémora, which has locations in Spain and Portugal, is part of Accion’s environmental and urban services division. The firm’s other divisions include real estate, infrastructure, energy, water and transport and logistics. It also owns businesses including asset manager Bestinver and wine producer Hijos de Antonio Barceló.

Funeral services companies can be attractive targets for private equity firms. In October 2007, Advent International purchased century-old Mexican funeral chain Grupo Gayosso in a $317 million transaction.