Farris lawyers recently represented Diversified Royalty Corp. (DIV) and its wholly-owned subsidiary Mr. Lube Canada Ltd. on a strategic acquisition of the Mr. Lube + Tires franchisor business in Canada for an aggregate purchase price of $235 million, subject to customary closing and post-closing adjustments. Mr. Lube + Tires is the leading Canadian automative service chain specializing in fast, drive-in drive-through, no-appointment-needed vehicle maintenance.

DIV is a multi-royalty corporation, engaged in the business of acquiring top-line royalties from well managed multi-location businesses and franchisors in North America. DIV’s objective is to acquire predictable, growing royalty streams from a diverse group of multi-location businesses and franchisors. DIV, through its subsidiary Mr. Lube Canada Ltd., will also operate the Mr. Lube + Tires franchisor business in Canada. The purchase price was funded by DIV’s cash on hand, a private placement of DIV shares, rolled equity as well as $38.5 million drawn from DIV’s existing acquisition facility and $212.5 million drawn from a new senior credit facility entered into by Mr. Lube Canada Ltd.

Farris LLP acted for DIV and Mr. Lube Canada Ltd. with respect to the existing and new credit facilities, as well as with respect to corporate governance, employment and securities matters. Farris’ transaction team was led by partner David Selley (banking) and included partners Rob Veitch (corporate governance and securities) and Alex Mitchell (employment); and associates Allison Render (employment), Nick Allen (corporate and banking) and Doris Wang (banking).