Valvoline Announces New Development Agreements with Franchisees and the Acquisition of Franchise Locations in Michigan and Ohio
Signs eight new development agreements with seven franchisees for a
total of more than 160 new stores over the next six years, including
expansion in the Northeast, Mid-Atlantic and California; and the
purchase of 56 stores from Henley Bluewater LLC
LEXINGTON, Ky.–(BUSINESS WIRE)–Valvoline Inc. (NYSE: VVV), announced today that it has signed eight new
development agreements with seven of its largest Valvoline Instant Oil
ChangeSM (VIOC) franchisees for the addition of more than 160
stores by 2023. Valvoline continues to work on additional development
agreements that when complete would provide for a combined total of more
than 200 new VIOC franchise stores in the next six years.
Two of these agreements are with the company’s largest franchisee,
Henley Enterprises, Inc., which opened the first VIOC franchise location
in 1989 and currently has more than 200 service centers, primarily in
the Northeast and southern California. Pursuant to the agreements, two
of Henley’s subsidiaries will add approximately 100 stores in California
and the Northeast and Mid-Atlantic regions. Valvoline also announced it
has signed a definitive agreement with Henley Bluewater LLC to acquire
its 56 stores in Michigan and northern Ohio. The acquisition is expected
to be completed in the first quarter of fiscal 2018. Financial terms
were not disclosed.
“A core element of Valvoline’s strategy is to accelerate the growth of
our industry-leading quick lube model,” said Sam Mitchell, Valvoline’s
chief executive officer. “Through these development agreements we are
leveraging our strong relationships with our franchisees as they commit
capital and resources to drive their store growth. At the same time, we
are committing our own capital to grow company-owned stores. Today’s
announcements reflect the progress we’ve made in mapping out our
deliberate system-wide growth plans and position us well as we move into
fiscal 2018.”
The service model at VIOC has been built to provide a quick, easy and
trusted experience for every customer, every day. Customers receive a
stay-in-your-car solution for preventive maintenance services, including
full-service oil changes and each vehicle manufacturer’s mileage-based
services. The company’s model is built on an unwavering commitment to
developing and protecting superior talent, both inside and outside its
stores, and consistent execution of its proprietary tools, including
point-of-sales technology, SuperProTM Management System and
digital marketing platforms.
“The transactions announced today represent an exciting opportunity
across the entire VIOC system. The development agreements enable our
franchisees to focus on faster growth in targeted markets, and
Valvoline’s acquisition of the 56 stores in Michigan and Northern Ohio
allows us to increase the density of our company-owned network of stores
in the Midwest,” said Tony Puckett, Valvoline’s president, Quick Lubes.
“From this much stronger base in the region, we’ll be well positioned to
leverage our resources to enhance operational efficiency and capture
further growth opportunities for our company operations.”
“Divesting our Midwest stores allows us to free up capital to focus on
aggressive growth in our target markets where we already have strength,
namely in California, Mid-Atlantic and the Northeast,” said Don Smith,
CEO of Henley Enterprises, Inc. “After nearly 30 years as a franchisee,
VIOC’s retail model has never been stronger and the company’s
relationship with franchisees have never been healthier. I look forward
to adding an additional 100 stores to the VIOC system over the next six
years.”
For a list of all Valvoline Instant Oil Change service center locations
and hours of operation, visit www.vioc.com.
About ValvolineTM
Valvoline Inc. (NYSE:VVV) is a leading worldwide producer and
distributor of premium branded automotive, commercial and industrial
lubricants, and automotive chemicals. Valvoline ranks as the #2
quick-lube chain by number of stores and #3 passenger car motor oil
brand in the DIY market by volume in the United States. The brand
operates and franchises more than 1,070 Valvoline Instant Oil ChangeSM
centers in the United States. It also markets Valvoline™ lubricants and
automotive chemicals; MaxLife™ lubricants created for higher-mileage
engines; SynPower™ synthetic motor oil; and Zerex™ antifreeze. Visit www.valvoline.com
to learn more.
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of Section 27A of the Securities Act of 1933, as amended, and Section
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market new products; Valvoline’s ability to retain its largest
customers; achievement of the expected benefits of Valvoline’s
separation from Ashland; Valvoline’s substantial indebtedness (including
the possibility that such indebtedness and related restrictive covenants
may adversely affect Valvoline’s future cash flows, results of
operations, financial condition and Valvoline’s ability to repay debt)
and other liabilities; operating as a stand-alone public company;
failure, caused by Valvoline, of Ashland’s distribution of Valvoline
common stock to Ashland shareholders to qualify for tax-free treatment,
which may result in significant tax liabilities to Ashland for which
Valvoline may be required to indemnify Ashland; and the impact of
acquisitions and/or divestitures Valvoline has made or may make
(including the possibility that Valvoline may not realize the
anticipated benefits from such transactions or difficulties with
integration). These forward-looking statements are also subject to the
risks and uncertainties affecting Valvoline that are described in its
most recent Form 10-K (including in Item 1A Risk Factors and “Use of
estimates, risks and uncertainties” in Note 2 of Notes to Consolidated
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reflected in these forward-looking statements are reasonable, Valvoline
cannot guarantee that the expectations reflected herein will be
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forward-looking statements made by Valvoline in the context of these
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subsidiaries, registered in various countries
Contacts
Valvoline Inc.
Investor Relations
Sean T. Cornett,
+1-859-357-2798
scornett@valvoline.com
or
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