Valvoline Inc. Continues to Accelerate Network Growth; Adding Nearly 200 Stores with Definitive Agreement to Acquire Breeze Autocare

Core Viewpoint - Valvoline Inc. has signed a definitive agreement to acquire Breeze Autocare for approximately $625 million in cash, aiming to enhance its network and growth potential in the preventive automotive maintenance sector [1][7]. Company Overview - Valvoline Inc. operates over 2,000 service centers across the U.S. and Canada, providing quick automotive maintenance services [12]. - Breeze Autocare operates nearly 200 stores primarily under the Oil Changers brand across 17 states, generating$200 million in net sales for its most recent fiscal year [2][7]. Strategic Benefits - The acquisition will increase Valvoline's store count to over 2,200 locations, supporting its goal of expanding to more than 3,500 stores [3]. - The transaction is expected to deliver top-line sales and profit growth, enhancing Valvoline's already strong cash flow profile [8]. - The purchase price represents a multiple of 10.7 times Breeze Autocare's adjusted EBITDA, indicating a strategic investment [7][8]. Operational Integration - Breeze Autocare stores will initially continue to operate under their current branding while Valvoline develops a long-term integration plan [3]. - The acquisition is anticipated to leverage scale advantages, including retail-specific technology investments and fleet sales expansion [8]. Financial Aspects - The transaction is expected to close in fiscal Q3 2025, subject to customary closing conditions and regulatory approvals [9]. - Valvoline plans to fund the acquisition with a newly issued Term Loan B and will pause its share repurchase activity [9].