Valvoline, Greenbriar Ordered by FTC to Divest 45 Oil Changers Stores in Acquisition Deal

Valvoline Inc. and private equity firm Greenbriar Equity Fund V must divest 45 quick lube locations as part of the companies’ $625 million acquisition deal, as recently ruled by the Federal Trade Comission.

According to MyChesCo, the FTC argued that the acquisition, left unchallenged, would lead to a lack of competition across 25 local markets in eight states: California, Kentucky, Idaho, Illinois, Indiana, Michigan, Washington, and Wisconsin. 

The acquisition consists of approximately 200 stores operated under the Oil Changers brand, which Valvoline would be purchasing. However, until now, the two brands have directly competed in these markets. With a merger, the FTC is concerned that competition will diminish, prompting price hikes and decreased quality.

The 45 locations will be purchased from Greenbriar by Main Street Auto, LLC.

With a 3-0 vote, a complaint was issued by the FTC, and members of the public will have 30 days to submit comments before the order is finalized.

“The FTC took action today to ensure that quick-lube oil changes remain affordable and available for American consumers across the country,” said Daniel Guarnera, director of the FTC’s Bureau of Competition. “The FTC’s divestiture order will preserve competition that is critical to providing convenient oil changes at affordable prices to millions of consumers.”