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  • Diversified Royalty Corp. (TSX: DIV) has a acquired a number of trademarks through a deal with Oxford Learning Centres Inc.
  • The trademarks are valued at C$44 million.
  • This constitutes a 10% increase in the company’s revenue portfolio
  • Due to this rise, the company is increasing its annual dividend from 23 cents a share to 23.5 cents.
  • This change will come into effect on March 1st 2020.
  • Diversified Royalty Corp. (TSX: DIV) has MCap of C$362 million
  • TSX: DIV has a current share price of C$3.32, which is up 2.3%. today.

Diversified Royalty Corp. (TSX: DIV) has entered an agreement with Oxford Learning Centres (OLC) to increase its royalty portfolio.

The acquired trademarks are valued at 44 million, with a current annual revenue of C$4.3 million. That constitutes a 10% rise in revenue.

As a result of the acquisition the company is raising its annual dividend from 23 cents a share to 23.5 cents.

Sean Morrison, President and Chief Executive Officer of DIV, stated, “The Oxford transaction adds a sixth royalty stream to DIV’s portfolio, representing approximately 10% of DIV’s pro-forma revenue and is another step in our strategy of purchasing royalties from a diverse group of proven multi-location businesses and franchisors”

“The Oxford transaction is accretive, allowing DIV to both increase its annual dividend to 23.5 cents per share while further reducing the pro forma payout ratio to approximately 95%. The Oxford transaction, together with the Mr. Mikes and Nurse Next Door royalty acquisitions that closed in 2019, will represent the third royalty acquisition completed in the past nine months and exemplifies DIV’s business model.”

The acquisition and it’s the increased dividends come into effect on March 1st 2020.

Diversified Royalty Corp. (TSX: DIV) has MCap of C$362 million. Its current share price is C$3.32, which is up 2.3%. today.


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