Sutton Group has entered into a royalty agreement with Diversified Royalty Corp.

Capital Raising
Transaction Details

Fort Capital Partners is pleased to announce the closing of a royalty transaction between Sutton Group Realty Services and Diversified Royalty Corp. (“DIV”).

Sutton sold trademarks and certain other IP utilized in its business to Diversified for $30.6 million. At the same time, DIV licensed the trademarks back to Sutton for initial annual payments totaling $3.6 million.

The payment of the purchase price was financed by DIV with approximately $24.3 million from DIV’s cash on hand and approximately $6.3 million of non-amortizing senior debt provided by a Canadian chartered bank.

Sutton retained Fort Capital to act as financial advisor in the structuring, negotiating and closing of the transactions.

Sutton Group Realty Services was founded in 1983 and is among the leading residential real estate firms in Canada, with over 8,200 agents and 200 offices across the country. Sutton is a franchise business with a history of innovation and a tradition of leadership in the residential real estate industry, and began with a revolutionary business idea (charging REALTORS® a low fixed monthly fee) that remains current and relevant after over 30 years.

Diversified Royalty Corp. 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 is listed on the Toronto Stock Exchange under the symbol “DIV”.

Fort Capital Inc. is an investment bank that works with public and private companies in Canada. The firm draws from collective capital markets experience to provide its clients with proven, accessible and independent investment banking advice and transaction execution. For more information, visit fortcapital.ca.

FORT CAPITAL PARTNERS. BECAUSE IT’S NOT JUST BUSINESS.