March 3, 2023–Valvoline Inc. has recently completed the sale of its Global Products business, purchased by Aramco, according to a press release.
Aramco paid “$2.65 billion in cash” as part of the purchase. Aramco Executive Vice President of Downstream, Mohammed Y. Al Qahtani, said the addition of the Global Products business will “advance our international lubricants growth strategy and leverages our global base oils production and R&D capabilities.”
Valvoline enlisted Goldman Sachs & Co. LLC as financial advisors and Cravath, Swaine & Moore LLP as legal advisors throughout the process.
Valvoline CEO, Sam Mitchell, said the company can focus on “strategic plans” now, with plans to provide “significant capital returns” for shareholders through “equity buybacks over the next 18 months.”
Prior to the finalization of the purchase, Valvoline’s board of directors also authorized a $1.6 billion repurchase. The company plans to “repurchase shares of its common stock up to the full amount of the authorization within 18 months,” and to use “remaining net after-tax proceeds” for debt reduction and investments.
