Valvoline Inc (VVV) News

Valvoline said it has agreed to sell its global-products business for $2.65 billion in cash to Saudi Aramco, a move that comes nearly a year after Valvoline said it planned to separate the segment from its retail-services business.

Once the deal closes, Valvoline said it would own its name brand for all retail services globally, excluding China and certain countries in the Middle East and North Africa, while Aramco would own the Valvoline brand for all product uses globally.

Valvoline said it would procure motor oil and other products from its divested global-products business through a long-term supply agreement.

Valvoline's retail-services segment operates quick-lube service chains, while its global-products segment sells lubricants and other automotive and engine maintenance products to automotive retailers, installers and original equipment manufacturers.

Valvoline Inc. is a marketer and supplier of engine and automotive maintenance products and services. The Company operates through two segments: Retail Services and Global Products. Retail Services segment services the passenger car and light truck quick lube market in the United States and Canada with an array of preventive maintenance services and capabilities performed through Valvoline’s retail network of Company-operated, independent franchise, and Express Care stores that service vehicles with Valvoline products. Global Products segment sells engine and automotive preventive maintenance products in more than 140 countries to retailers, installers, and commercial customers, including original equipment manufacturers, to service light- and heavy-duty vehicles and equipment. Its products and services are sold through nearly 1,600 company-operated and franchised service center stores, to retailers with over 55,000 retail outlets.