Dignity will purchase five funeral homes currently operating as Co-op Funeralcare, with all colleagues undergoing a TUPE transfer, resulting in no planned redundancies.
Three of the facilities are based in Glasgow, Sheffield and Lichfield.
The acquisition will allow the Co-op group to further roll out its £1.3bn planned investment to improve the products and services available to customers.
Richard Lancaster, managing director of Co-op Funeralcare said: “I would like to personally thank our crematoria colleagues for their ongoing professionalism and hard work in serving bereaved families. I wish them the very best for the future as they continue to provide excellent levels of service within their local communities.
“This agreement is key in allowing us to further invest in providing essential funeral services to our members and customers in communities across the UK as we have done for over 100 years.
“With a limited presence in the overall market, our crematoria operation is a small part of our business, operating distinctly and separately from our funeral homes.
“The sale will enable us to invest in making our funeral home services more accessible, both in terms of our presence in new communities and by enhancing our customer proposition and services.”
The transaction is expected to complete on or around 5 July 2016 for the freehold locations.
Completion of the sale of the leasehold locations is conditional upon consent of the relevant local authorities however completion on both sites is anticipated by early August.
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