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

Transaction Details

Fort Capital Partners is pleased to announce the closing of a royalty transaction between Sutton Group Realty Services (“Sutton“) 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.