DLC closes sale of interest in BC-based fitness company

The transaction was valued at more than $16 million

DLC closes sale of interest in BC-based fitness company

Dominion Lending Centres Inc. has announced that it has completed the sale of its 58.4% interest in British Columbia-based Club16 Limited Partnership, for a purchase price of $18 million.

The sale was closed with a cash payment of $16.5 million and a non-interest-bearing promissory note issued by Club16 for $1.5 million.

“The promissory note is to be paid in 24 equal monthly payments of $62,500, with the first monthly payment commencing on August 1, 2023,” according to the announcement.

DLC said that the cash proceeds from the sale will go towards the repayment of corporate debt.

Read more: DLC releases half-year financial results

“We are pleased to facilitate the sale of our interest in Club16 back to Chuck Lawson, Carl Ulmer, and Trevor Linden,” said Gary Mauris, chairman and CEO of DLC. “Since acquiring the interest in Club16 in 2016, the corporation has completed a significant reorganization with a focus on DLC as the corporation’s core business.

“As such, the corporation had reported its investment in Club16 as a non-core asset and believes the sale further simplifies our business and our financial reporting. Chuck, Carl, and Trevor have been outstanding partners for over five years and we wish them the best as they continue to grow Club16 into a market-leading fitness company in British Columbia.”