Valvoline Inc. to Refranchise 38 Company Stores; Welcomes New Franchise Partner Velocity Auto Care
Rhea-AI Summary
Valvoline Inc. (NYSE: VVV) announces plans to refranchise 38 Valvoline Instant Oil Change service centers to Velocity Auto Care, a portfolio company of Franchise Equity Partners. The service centers are located in Austin, San Antonio, El Paso, and west Texas. This marks Valvoline's third refranchising initiative, following two transactions in FY2024 that converted 28 company stores to franchises in Las Vegas and Denver. Velocity Auto Care, which operates over 750 storefronts across 33 states, will join as Valvoline's newest franchise partner.
Positive
- Strategic expansion of service network through franchising
- Partnership with established operator managing 750+ storefronts across 33 states
- Successfully completed three refranchising initiatives, converting total of 66 stores
Negative
- Reduction in company-owned locations may impact direct revenue control
News Market Reaction
On the day this news was published, VVV declined 8.69%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
"One of our strategic priorities is accelerating our network growth," said Lori Flees, Valvoline Inc. President and Chief Executive Officer. "We are pleased to have franchisees that can expand select markets more rapidly than the company was planning. More service centers, whether owned and operated by the company or a franchise, deliver more convenience for our customers, more opportunities for our team members, and more value to our shareholders. We look forward to many years of outstanding partnership with our newest franchisee, Velocity Auto Care."
The new franchise partner, Velocity Auto Care, is a wholly owned portfolio company of Franchise Equity Partners which owns a portfolio of 10 different franchise companies operating quick-service restaurants, residential home services, auto dealerships, and more. In total, Franchise Equity Partners operates more than 750 storefronts across 33 states.
"We are excited to join the Valvoline Instant Oil Change franchise," said Mike Esposito, Co-Founding and Managing Partner of Franchise Equity Partners. "Valvoline Inc. is a brand Americans have known for generations, and everyone at Velocity Auto Care is committed to continue delivering the quick, easy, trusted service that customers of central and west
This transaction will be the third refranchising initiative by Valvoline Inc. The company completed two transactions in fiscal year 2024, converting a total of 28 company stores to franchise in the growing markets of
Footprint Capital is serving as financial advisor to the company.
The company will share additional details about this refranchising effort during its Fourth Quarter FY24 Earnings Announcement at 9 a.m. ET today, Nov. 19.
About Valvoline Inc.
Valvoline Inc. (NYSE: VVV) delivers quick, easy, trusted service at more than 2,000 franchised and company-operated service centers across
About Franchise Equity Partners:
Franchise Equity Partners is a private investment firm specializing in providing capital to franchise businesses and their owners. Its differentiated approach combines extensive corporate finance and operating experience with an initial target portfolio size of
Forward-Looking Statements
Certain statements herein, other than statements of historical fact, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may include, without limitation, executing on the growth strategy to create shareholder value by driving the full potential in the Company's core business, accelerating network growth and innovating to meet the needs of customers and the evolving car parc; realizing the benefits from the sale of Global Products; and future opportunities for the remaining stand-alone retail business; and any other statements regarding Valvoline's future operations, financial or operating results, capital allocation, debt leverage ratio, anticipated business levels, dividend policy, anticipated growth, market opportunities, strategies, competition, and other expectations and targets for future periods. Valvoline has identified some of these forward-looking statements with words such as "anticipates," "believes," "expects," "estimates," "is likely," "predicts," "projects," "forecasts," "may," "will," "should," and "intends," and the negative of these words or other comparable terminology. These forward-looking statements are based on Valvoline's current expectations, estimates, projections, and assumptions as of the date such statements are made and are subject to risks and uncertainties that may cause results to differ materially from those expressed or implied in the forward-looking statements. Additional information regarding these risks and uncertainties are described in the Company's filings with the Securities and Exchange Commission (the "SEC"), including in the "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," and "Quantitative and Qualitative Disclosures about Market Risk" sections of Valvoline's most recently filed periodic reports on Forms 10-K and 10-Q, which are available on Valvoline's website at http://investors.valvoline.com/sec-filings or on the SEC's website at http://www.sec.gov. Valvoline assumes no obligation to update or revise these forward-looking statements for any reason, even if new information becomes available in the future, unless required by law.
™ Trademark, Valvoline Inc., or its subsidiaries, registered in various countries
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For Further Information
Media Inquiries
Angela Davied
+1 (877) 508-0832
media@valvoline.com
Investor Inquiries
Elizabeth B. Clevinger
+1 (859) 357-3155
IR@valvoline.com
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SOURCE Valvoline Inc.
FAQ
How many Valvoline stores (VVV) are being refranchised in Texas?
Who is the new franchise partner for Valvoline's (VVV) Texas locations?
How many refranchising initiatives has Valvoline (VVV) completed in FY2024?
