Saudi Aramco announced the signing of a purchase agreement to acquire Valvoline International Products, a subsidiary of the American company Valvoline, for $2.65 billion. The deal is subject to the usual purchase agreement modifications.
According to a statement issued by Aramco, the company will benefit from Valvoline’s strong manufacturing and distribution network, strong partnerships with users and suppliers, and its 150-year global brand reputation.
Mohammed Al Qahtani, Aramco Senior Vice President of Downstream, said Valvoline’s global products business fits perfectly with Aramco’s growth strategy for lubricants “as it will leverage our global base oils production, contribute to our R&D capabilities and strengthen our existing relationships with OEMs”.
“Also, Valvoline will allow us to benefit from our relationships with the original equipment manufacturers. Valvoline’s popular brand and global presence will continue to be developed and expanded under Saudi Aramco’s supervision,” Al Qahtani added.
Valvoline will focus on its market-leading retail services business after the transaction is completed. This includes improving the company’s growth path and service model. As the number of registered vehicles grows, the retail service is expected to benefit from a strong financial position and a clear value creation strategy, including scaling the world-class preventive maintenance services model for electric vehicle owners and fleets.
The transaction is subject to certain customary adjustments set forth in the equity purchase agreement, Aramco said.