Valvoline Closes Breeze Autocare Deal, Boosts Growth Strategy

Core Insights - Valvoline Inc. has completed the acquisition of Breeze Autocare for approximately $625 million, enhancing its preventive maintenance network and expanding its North American footprint to over 2,200 locations [1][2][9] - The acquisition aligns with Valvoline's strategy to accelerate growth through high-quality acquisitions and is expected to be EPS-neutral in the first year but accretive over time [3][4] Acquisition Details - The deal was announced in February 2025 and reflects a 10.7x multiple on Breeze Autocare's adjusted EBITDA [4] - Valvoline plans to fund the acquisition through a new Term Loan B and aims for a net leverage ratio of 2.5x–3.5x within 24 months [4][5] Strategic Implications - The addition of Breeze Autocare strengthens Valvoline's service capabilities and customer reach, particularly enhancing its 15-minute oil change model [3][5] - This acquisition supports Valvoline's long-term growth plans and aims to deliver consistent and efficient automotive maintenance services across North America [5] Market Performance - Valvoline's shares have decreased by 22.4% over the last year, contrasting with a 12.5% rise in its industry [6]