The Saudi Arabian Oil Company (Aramco) has completed the acquisition of the Valvoline global products business (Valvoline Global Operations) for $2.65 billion, through one of its wholly-owned subsidiaries.
With this acquisition, which follows the signing of an equity purchase agreement by the companies announced on August 1, 2022, Aramco accelerates its aim to become one of the world’s pre-eminent integrated, branded lubricants players, said the company.
Aramco will now own the Valvoline brand with respect to the products business, and Valvoline will own the Valvoline brand with respect to its retail services business.
Aramco and Valvoline plan to work together to continue to grow the Valvoline brand equity globally, it said.
Valvoline Global Operations, which will continue to be headquartered in Lexington Kentucky, is a worldwide leader in automotive and industrial solutions, creating future-ready products and best-in-class services for partners around the globe.
Mohammed Y Al Qahtani, Aramco Executive Vice President of Downstream, said: “This acquisition will advance our international lubricants growth strategy, and leverage our global base oils production and R&D capabilities. It also provides an exciting opportunity to strengthen our relationship with original equipment manufacturers worldwide by extending the reach of Valvoline Global Operations as a preeminent company among multi-national lubricant brands, a position it has proudly held for over a century and a half. We look forward to welcoming the Valvoline Global Operations employees and brand, one of the most recognized names in the industry, into the Aramco family. At the same time, we expect Aramco’s global network to provide an unmatched foundation for this historic brand’s next chapter of development.”
Sam Mitchell, Valvoline CEO, said: “It is a historic day for our 157-year-old brand. With the sale of the global products business to Aramco, each business can now better focus on future growth. Today, Valvoline Inc. becomes a pure-play, automotive services company with a right-sized capital structure and enhanced capital allocation. Additionally, Valvoline Inc. expects to offer significant capital returns to our shareholders through equity buybacks over the next 18 months. All this combined allows us to focus our efforts on and further strengthen our brand as a premier auto after-market services provider.”
The acquisition complements Aramco’s growing presence in the premium branded lubricants market space and opens opportunities to enhance the position of the 150+ year-old name globally, providing a foundation for future growth and downstream portfolio integration, the company said. - TradeArabia News Service