Toronto, Ontario-based Grenville Strategic Royalty Corp. (GRC) announced an investment in Calgary, Alberta-based Expert RV Park Models. Expert received $1.25 million with an option, if agreed upon by both companies, for Grenville to advance an additional $754,730 at a later date.
In exchange for this advance, Grenville will receive a royalty based on Expert Home’s gross revenue within Grenville’s average royalty rate of between 1% and 4%.
Expert Home builds single-piece, self-contained contemporary living spaces, ranging from park model RVs to custom cottages. By building its models and parts in a climate controlled workshop, Expert Home cuts down on problems with weather, craft precision and material delivery.
Expert CEO Brad Sander said in the announcement, “Partnering with Grenville will help accelerate our growth and expand the business to new places. With this capital, Expert Home can focus on broadening our product line and sales channels. We are thrilled at the opportunity.”
Grenville President and CEO William Tharp said that Expert “is an excellent example of a family-built company enjoying record revenue sales and requiring a growth capital partner. Bob Sander and his son, Brad, and their wives have built out a solid platform for growth and have an exceptional product that is very timely.” He said Grenville looks forward to helping Expert expand the business.
To date, Grenville has completed approximately $32.71 million in royalty financings, building a diversified portfolio in Canada and the United States.