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DLA Piper has advised Sutton Coldfield funeral services group Dignity on a deal to acquire 36 locations from Midland rival Laurel Funerals for £38 million.

Wolverhampton-based Laurel Funerals currently operates 83 locations across the º£½ÇÊÓƵ.

In order to avoid any potential competition concerns, Dignity will only acquire locations that complement its own geographic spread and will not acquire 47 other locations operated by Laurel, nor Laurel’s head office function.

The acquisition, which is expected to complete on or around July 13, is being funded from cash already held by Dignity

In addition, DLA Piper advised Dignity on a £26.25 million debt facility with the Royal Bank of Scotland, which will be secured against the assets being acquired, together with certain other funeral assets operated outside of the group’s securitisation structure.

Whilst not required to fund the acquisition the facility will provide a source of additional funding for the group if needed.

Mike McCollum, chief executive of Dignity, said: “This acquisition will allow us to extend our funeral network further into areas that we do not currently serve.

“It represents an excellent investment for Dignity, using cash already held by the group and supports our continued growth.”