Diversified Royalty Corp T.DIV

Alternate Symbol(s): BEVFF | T.DIV.DB.A

Consumer Cyclical Auto & Truck Dealerships

Diversified Royalty Corp. is a multi-royalty company. The Company is engaged in the business of acquiring royalties from multi-location businesses and franchisors in North America. The Company owns Mr. Lube, Sutton, Mr. Mikes, Nurse Next Door, Oxford Learning Centres, Stratus Building Solutions and BarBurrito trademark. Mr. Lube is the quick lube service business in Canada, with locations across Canada. Mr. Mikes operates casual steakhouse restaurants primarily in western Canadian communities. Nurse Next Door is North America’s growing home care provider with locations across Canada and the United States as well as in Australia. Oxford Learning Centres is a franchised supplemental education service. Stratus Building Solutions is a commercial cleaning service franchise company providing janitorial, building cleaning, and office cleaning services primarily in the United States. BarBurrito is a quick-service Mexican restaurant chain.

TSX:DIV - Post by User

Diversified Royalty Corp

Bullboard Posts

Comment by smcapinvestoron Aug 25, 2017 5:47pm

182 Views

Post# 26623588

RE:RE:RE:Airmiles. Wow.

Mining_Dude wrote: Yea this just hit our desk. initial reaction:
1) sizing is a tad small, expected $100m (25% debt financed). Though they hinted that there may be another deal post credit line after this one and their conference call deck confirms this
2) implied cash yield is above expectations. We expected 12% implied cash yield on the deal, this one seems to be clocking in at ~15%
3) Recognizable brand is excellent. Only negative is BMO will need to renew its airmiles deal next year to maintain proforma outlook..

Conference call on this is at 3pm Pacifric. Will probably get more color there.

If the deal produces the promised 8.5M, you can bet the contigent consideration will be payable.
8.5/67.5 = 12.5%

I like that the deal has performance based variable consideration to add insurance.

I think smaller deals are preferable to bigger ones, the name is diverisified royalty after all.

Bullboard Posts

These stocks are the top picks for Canadian ETFs