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Rival funeral homes to be in same family.

The News & Observer (Raleigh, NC)

| April 06, 2006 | COPYRIGHT 2006 The News & Observer. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Apr. 6--Two of Wake County's busiest and oldest funeral homes will become part of the same chain after their corporate parents merge this year.

When the deal closes, Brown-Wynne Funeral Homes and Mitchell Funeral Home will be part of Houston-based Service Corp. International.

The fallout from the merger won't be felt for some time, but local industry observers worry about closings and increasing competitive pressures as the larger company leverages its size to offer lower prices.

SCI, which is the nation's biggest funeral home company, announced Monday that it will pay $856 million to buy Cincinnati-based Alderwoods Group, which is the second largest.

SCI will balloon into a network of 1,712 funeral homes and 490 cemeteries in 48 states, Canada and Puerto Rico. It already owns Brown-Wynne and will acquire Mitchell Funeral Home in the deal.

Together, the companies will control a little more than 10 percent of the national market share in the $15.9 billion funeral service industry, research firm IBIS World said.

But locally, the conglomerate could control almost a quarter of the funeral business.

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