Owners of EVs will have a trusted alternative for servicing their cars.
Founded way back in 1866, Valvoline is a giant in the automotive industry in America for its manufacturing and distribution of automotive oil. Now headquartered in Kentucky, it is the second largest oil change service provider in the USA as of 2022 and has over 1,500 service centers around the country, helping to keep best-sellers like the Ford F-150 on the road. But as cars transition into the electrified era, businesses like Valvoline are also undergoing a transformation of their own. The Saudi Arabian Oil Company (Aramco) announced this week that it would be purchasing Valvoline's Global Products business for the sizable sum of $2.65 billion.
Both companies are set to benefit from the mega deal, with Valvoline set to expand its auto maintenance model to EVs as it becomes a "pure-play automotive service provider". It will also use the funds from the transaction to lower its debt and focus on its Retail Business.
"The sale of Global Products represents the successful outcome of our strategy to unlock the full, long-term value of our strong but differentiated Retail Services and Global Products businesses," said Sam Mitchell, Valvoline CEO. "We have built two leading businesses that are well-positioned for continued success as they pursue their individual strategic priorities. We are pleased that our Global Products team will have a strategic new home with Aramco to further grow the business while developing the brand into a global lubricants leader."
Aramco will reap the rewards from the strong manufacturing and distribution network of Valvoline Global Products, along with the latter's long-established relationships with OEMs.
Valvoline's Global Products unit also sells coolants, transmission fluids, and various other preventative maintenance products for light- and heavy-duty cars alike.
Besides helping to keep millions of cars running smoothly for decades, the company has also marketed its motor oil by sponsoring auto races such as the NASCAR Cup Series and SCCA National Championship Runoffs.
As automakers scramble to train enough technicians to work on EVs and plug-in hybrids safely, a trusted name like Valvoline will provide further peace of mind for owners of older EVs who need to have their cars serviced. After all, we are already at the point where EVs like the Nissan Leaf and Tesla Model S have been on the road for over a decade and are well out of the warranty period.
Once the sale goes through later in 2022 or early in 2023, Valvoline will own the Valvoline brand for all retail services around the globe, excluding China and some other regions like North Africa. Aramco will own the Valvoline brand for all products globally.