Aug. 1, 2022—Valvoline has agreed to sell its global products business to a foreign oil company for $2.65 billion.
A press release says that the buyer is Aramco, the state-run oil firm of Saudi Arabia. The deal leaves Valvoline as a retail services business, focusing on the automotive service segment that includes a network of company-owned and franchised Valvoline Instant Oil Change shops. Valvoline expects retail services to make $1.5 billion in sales for FY 2022.
"After closing, we will focus on our market leading Retail Services business, including further enhancing our growth trajectory and world-class service model," CEO Sam Mitchell's statement read in part. "Retail Services will benefit from a strong balance sheet and a clear strategy for value creation, including extending our world-class preventive auto maintenance service model to EV owners, OEMs and fleets as the car parc evolves."
The deal includes a long-term agreement for Valvoline retail services to purchase "motor oil and related products" from the Saudi-run products division.
After the deal, Aramco will own the Valvoline brand for product uses, the press release says. Bloomberg reports that Aramco is investing in other areas of the oil business to get away from the volume of crude oil sales.
