LEXINGTON, Ky., March 1,
2023 /PRNewswire/ -- Valvoline Inc. (NYSE: VVV), a
trusted leader in preventive automotive maintenance delivering
quick and convenient service, today announced that it has completed
the previously announced sale of its Global Products business to
Aramco. The purchase price is $2.65
billion in cash, subject to certain customary adjustments.
"It is a historic day for our 157-year-old brand. With the sale
of our Global Products business to Aramco, each
business can now focus on its individual future growth
and strategic plans," said Sam
Mitchell, CEO, Valvoline Inc. "Today, Valvoline Inc. becomes
a pure-play, automotive services company with a right-sized capital
structure and enhanced capital
allocation. Additionally, Valvoline Inc. expects to offer
significant capital returns to our shareholders through equity
buybacks over the next 18 months. We are excited about our
future and our ability to continue driving long-term shareholder
value."
"This acquisition will advance our international lubricants
growth strategy and leverages our global base oils production and
R&D capabilities," said Mohammed Y. Al
Qahtani, Aramco Executive Vice President of Downstream. "It
also provides an exciting opportunity to strengthen our
relationship with original equipment manufacturers worldwide by
extending the reach of Valvoline as one of the world's preeminent
lubricant brands."
As previously announced, Valvoline Inc.'s board of directors
approved a $1.6 billion repurchase
authorization to effectuate a significant return of capital to
shareholders using the net proceeds from the sale. Valvoline Inc.
expects to repurchase shares of its common stock up to the full
amount of the authorization within 18 months, with the remaining
net after-tax proceeds used for debt reduction and to invest in
attractive growth opportunities.
Goldman Sachs & Co. LLC acted as financial advisor and
Cravath, Swaine & Moore LLP acted as legal advisor to Valvoline
in connection with the sale.
Forward-Looking Statements
Certain statements in this
press release, other than statements of historical fact, are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements may include, without limitation, statements about the
completed transaction, the benefits and synergies of the completed
transaction, future opportunities for the standalone Retail
Services company, the impact of any equity buybacks, the uses of
the net proceeds from the transaction and any other statements
regarding Valvoline's and Aramco's future operations, financial or
operating results, capital allocation, debt ratio, anticipated
business levels, future earnings, dividend policy, anticipated
growth, market opportunities, strategies, competition, and other
expectations and targets for future periods. Valvoline has
identified some of these forward-looking statements with words such
as "anticipates," "believes," "expects," "estimates," "is likely,"
"predicts," "projects," "forecasts," "may," "will," "should" and
"intends" and the negative of these words or other comparable
terminology. These forward-looking statements are based on
Valvoline's current expectations, estimates, projections and
assumptions as of the date such statements are made and are subject
to risks and uncertainties that may cause results to differ
materially from those expressed or implied in the forward-looking
statements. Important factors that could cause Valvoline's actual
results to differ materially from those in the forward-looking
statements include: the effect of the completion of the transaction
on Valvoline's ability to retain and hire key personnel and to
maintain relationships with customers, suppliers and other business
partners, uncertainties as to Valvoline's ability and the amount of
time necessary to realize the expected benefits of the transaction,
changes in the economic and financial conditions of Valvoline's
business and uncertainties and matters beyond the control of
management and other factors described in Valvoline's filings with
the Securities and Exchange Commission (the "SEC"), including in
the "Risk Factors," "Management's Discussion and Analysis of
Financial Condition and Results of Operations" and "Quantitative
and Qualitative Disclosures about Market Risk" sections of
Valvoline's most recently filed periodic reports on Forms 10-K and
10-Q, which are available on Valvoline's website at
http://investors.valvoline.com/sec-filings or on the SEC's website
at http://sec.gov. Valvoline assumes no obligation to update or
revise these forward-looking statements for any reason, even if new
information becomes available in the future, unless required by
law.
About Valvoline Inc.TM
The Quick,
Easy, Trusted name in preventive vehicle maintenance, Valvoline
Inc. (NYSE: VVV) leads the industry with automotive service
innovations that simplify consumers' lives and take the worry out
of vehicle care. With an average consumer rating of 4.6 out of 5
stars*, Valvoline Inc. has built the model for transparency and
convenience in automotive maintenance. From its 15-minute,
stay-in-your-car oil change to cabin air filters to battery
replacements to tire rotations, the Company's model offers
maintenance solutions for all types of vehicles. The Company
operates and franchises over 1,700 service center locations through
its Valvoline Instant Oil ChangeSM and Great Canadian
Oil Change retail locations. To learn more, or to find a Valvoline
service center near you, visit valvoline.com.
TM Trademark, Valvoline or its subsidiaries,
registered in various countries
SM Service mark, Valvoline or its subsidiaries,
registered in various countries
* Based on a survey of more than 250,000 Valvoline Instant Oil
Change customers annually
For Further Information
Investor Relations
+1 (859) 357-3155
ir@valvoline.com
Media Relations
Michele
Gaither Sparks
+1 (859) 230-8097
michele.sparks@valvoline.com
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SOURCE Valvoline Inc.