Diversified Royalty Corp. (“DIV”) completed its royalty transaction with Nurse Next Door Professional Homecare Services Inc. (“Nurse Next Door”) to indirectly acquire the trademarks and certain intellectual property rights utilized by Nurse Next Door in its premium home care business (the “NND Rights”) and to license the use of such intellectual property back to Nurse Next Door for an initial royalty of approximately $4.8 million per annum (the “Transaction”). The total purchase price for the NND Rights was approximately $75 million.
In connection with the Transaction, a subsidiary of DIV also entered into a $14.5 million senior credit facility with a senior Canadian bank, of which approximately $7.25 million was drawn on closing of the Transaction.
DIV 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.
Established in 2001, Nurse Next Door is an innovative and growing home care provider that offers home care services ranging from companionship to around-the-clock care. At the closing of the Transaction, Nurse Next Door operated 177 locations, including in Canada, where it has 65 locations; in the U.S., where it has 109 locations; and in Australia, where it has three locations, generating annual system sales of over $100 million.
FARRIS represented DIV with a transaction team led by Bradley Newby and which included David Selley (banking), Robert Veitch, Mark Lively and Zachary Kay.