The Saudi Arabian Oil Company (Aramco) has completed the acquisition of the Valvoline Inc. 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 Aug. 1, 2022, Aramco accelerates its aim to become one of the world’s preeminent integrated, branded lubricants players.
Aramco will now own the Valvoline brand with respect to the products business, and Valvoline Inc. will own the Valvoline brand with respect to its retail services business.
Aramco and Valvoline Inc. plan to work together to continue to grow the Valvoline brand equity globally.
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.
“This acquisition will advance our international lubricants growth strategy, and leverage our global base oils production and R&D capabilities,” said Aramco Executive Vice President of Downstream Mohammed Al Qahtani.
“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.”
Al Qahtani further said he was looking 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,” he added.
Valvoline Inc. CEO Sam Mitchell described it as 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.”
Mitchell added that “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.”