In Canada, Diversified Royalty pays $235M for Mr. Lube + Tires

Diversified Royalty Corp. recently announced that it, and its newly formed wholly owned subsidiary, have entered into an agreement with Mr. Lube Canada Limited Partnership and Mr. Lube Canada GP Inc. for the acquisition of the Mr. Lube + Tires franchisor business in Canada.

The purchase price was $235 million.

Sean Morrison, Chief Executive Officer of DIV, said, “DIV looks forward to completing the acquisition and increasing its economic exposure to Mr. Lube + Tires, our largest and best performing royalty partner. DIV is keen to work with Mr. Lube + Tires’ management as part of DIV and as equity partners, to continue Mr. Lube + Tires’ impressive growth and build it into Canada’s leading automotive services franchise business.

Pamela Lee, President and CEO of Mr. Lube + Tires, said, “Over its 50-year history, Mr. Lube + Tires has delivered trusted, convenient automotive maintenance to millions of Canadians who visit its locations each year. Mr. Lube + Tires has been partners with DIV for over 11 years, and we are excited to continue our partnership with DIV and unlock new growth opportunities for our franchisees as we execute on our strategy to become the largest automotive services franchise business in Canada.”

Mr. Lube + Tires is the leading Canadian automotive service chain specializing in fast, drive-in drive-through, noappointment-needed vehicle maintenance.

Founded by Cliff Giese in Edmonton in 1976, the creation of Mr. Lube + Tires launched the quick lube service
industry in Canada, and around the world. Conceived as a way to provide quick, no-appointment oil changes that appealed to the consumer’s need for convenience, over time Mr. Lube + Tires expanded its offerings to include other light automotive services including tire sales and installations; such other services now representing the majority of system sales.

As the chain grew, it also became one of the most successful franchising groups in Canada, with franchisees operating 186 of the 187 locations. For the past 13 years Mr. Lube + Tires has been named one of Canada’s Best Managed Companies, and it was recently recognized as having Canada’s Most
Admired Corporate Culture.

Mr. Lube + Tires services over 2 million Canadians customers each year, generating over $500 million in system sales.

Mr. Lube + Tire joins Diversified Royalty’s other holdings, which include: