Mr. Lube Canada LP sells Mr. Lube + Tires business for C$235M
On June 16, 2026, Mr. Lube Canada Limited Partnership ("Mr. Lube Canada LP") completed the sale of the Mr. Lube + Tires franchisor business in Canada to Diversified Royalty Corp. ("DIV") for a gross purchase price of C$235 million, subject to customary adjustments. DIV completed the acquisition through its newly formed subsidiary, Mr. Lube Canada Ltd. Mr. Lube Canada GP Inc. was also a vendor.
The purchase price was funded through a combination of DIV cash on hand, its undrawn acquisition facility, a new senior credit facility obtained by the purchaser, C$13.7 million in DIV shares issued on a private placement basis, and C$20.6 million of rolled equity issued to Mr. Lube + Tires management, representing a retained interest of approximately 4%. The vendors also provided the purchaser with a C$11.6 million non-interest-bearing loan to fund GST on the acquisition.
DIV is a multi-royalty corporation, based in Vancouver, BC, that acquires top-line royalties from multi-location businesses and franchisors in North America.
Mr. Lube + Tires, headquartered in Richmond, BC, is a Canadian automotive service chain specializing in fast, drive-in, no-appointment-needed vehicle maintenance.
McCarthy Tétrault LLP advised Mr. Lube Canada LP with a team led by Robin Mahood that included Maureen Gillis, Geena Lee, Zahra Naqvi, Declan Sakuls (Business Law), Geneviève Lille, Jeremy Ho, Quinn Finlay, James Chang (Tax), Kathy Tran (Real Property & Planning), and Josh Friedman (Financial Services).
