Mr. Lube Canada, a Delta, B.C.-based quick lube and preventive automotive maintenance provider, has sold 23 corporately-owned stores across Canada as the company says it plans to focus on its franchise business model.
Financial terms of the deal were not revealed.
The company says each outlet is being sold to an existing Mr. Lube franchisee, and the firm plans to focus on expanding its national presence. Less than a quarter of the company’s 102 outlets are corporately-owned. "We have decided to concentrate all of our efforts on supporting our franchising model," Stuart Suls, president and chief operating officer, notes in a press release.
"Due to our significant market successes and industry leading performance, we have created a solid investment vehicle by selling our established locations to a collection of trusted Mr. Lube franchisees," Suls says. "This gives us the opportunity to provide enhanced support for our proven franchise model while continuing to grow the business."
The transaction is expected to close by November 30.
After the deal is completed, the only remaining location which will continue under the ownership of Mr. Lube Canada is based in Edmonton, where founder Clifford Giese and his father, Arnold, opened the company’s first store in 1976.