Core Viewpoint - Driven Brands Holdings Inc. has announced a definitive agreement to divest its international car wash business, IMO, to Franchise Equity Partners for €406 million, which is aimed at simplifying its portfolio and strengthening its balance sheet [1][2][3]. Financial Impact - The divestiture is expected to reduce the company's pro forma leverage by approximately 0.3x, with a target to achieve a net leverage ratio of 3x by the end of 2026 [3]. - Cash proceeds from the transaction will primarily be utilized to pay down debt and for general corporate purposes [4]. - The company has updated its fiscal year 2025 outlook, projecting revenue of approximately $1.85 - $1.87 billion and Adjusted EBITDA of around $445 - $455 million [5]. Operational Changes - The international car wash business will be reported as discontinued operations starting in the fourth quarter of 2025, while Auto Glass Now will be reported as a stand-alone segment [4]. - Same store sales growth is now expected to be slightly below the original range of 1% to 3% due to the reclassification of the car wash business [6]. - The company continues to anticipate net store growth of approximately 175 to 200 locations [7]. Strategic Focus - The divestiture allows Driven Brands to sharpen its focus on its core North American businesses, particularly scaling Take 5 and enhancing cash generation through its franchise brands [2]. - The transaction is expected to close in the first quarter of 2026, pending regulatory approvals [3].