Valvoline to Continue Separation of Retail Services and Global Products Businesses

LEXINGTON, Ky., 12 October 2021 / PRNewswire / – Valvoline Inc. (NYSE: VVV), a global vehicle maintenance leader fueling the future of mobility with innovative products and services, today announced it is accelerating its transformation continues by continuing to separate its two business segments, Retail Services and Global Products.

“Following a comprehensive review of strategic alternatives by the board of directors and general management of Valvoline, we believe that a separation of our business segments will create significant and lasting value for our shareholders, employees and other stakeholders, and best position Retail Services and Global Products for continued long-term success, ”said Stephen F. Kirk, President of the council.

Sam mitchell, CEO, added: “Our confidence in separating these two strong businesses reflects the significant progress we have made in our strategic transformation. Retail Services now generates more than half of our adjusted EBITDA and is growing at an exceptional rate. The separation will allow Retail Services to continue to grow and focus on operating its world-class service model. Global Products is a market-leading, cash-generating company that we believe will thrive in the future with the ability to focus and allocate capital to its own strategic priorities. “

Valvoline works with its outside advisors to determine the best way to accomplish the separation. No timeline has been set for the completion of the separation, and Valvoline does not intend to disclose any further developments regarding this process, unless and until its board of directors approves a transaction. or a specific action.

Valvoline will publish its financial results for fiscal year 2021 on November 3, 2021. Based on the information currently available, the company plans to report sales of $ 3 billion for the 2021 financial year, up 27% compared to the previous year. Valvoline also currently expects Adjusted EBITDA and Adjusted EPS for fiscal 2021 to be within the forecast range for each measure, as shown in the company’s earnings announcement on. August 4, 2021. In addition, based on information currently available, Retail Services ended the year with 1,595 system-wide stores, and the company estimates that Retail Services experienced same-store sales growth across the system. system in the fourth quarter and the whole year by 20% and 21%, respectively, compared to the same periods of the previous year.

Retail Services Segment Overview
The Retail Services segment serves the passenger car and light truck rapid lubricants market by United States and Canada with a wide range of preventive maintenance services and capabilities performed through Valvoline’s retail network, independent and independent franchise stores operated by the company, and Express Care stores that service vehicles with Valvoline products. Valvoline operates the second largest rapid lubrication service chain by number of stores in United States with instant Valvoline oil changeSM and the third largest rapid lubrication service chain in Canada with the brand Valvoline Great Canadian Oil Change. On the strength of its strong reputation and a loyal and growing customer base, Valvoline believes that the Retail Services activity is well positioned to pursue exceptional growth and operational excellence. Based on currently available information, the Company expects to report Retail Services segment sales of $ 1.2 billion for fiscal year 2021, up 38% compared to the previous year.

Global Product Segment Overview
Present in more than 140 countries and territories, Valvoline’s Global Products segment sells lubricants and other automotive and engine care products primarily to automotive retailers, installers and original equipment manufacturers (OEMs). Valvoline has established itself as the world’s leading supplier of battery fluids to electric vehicle manufacturers, offering tailor-made products to help extend the range and efficiency of vehicles. In the United States, Valvoline is the third-largest brand of motor oil in the DIY market by volume. The company is low capital intensive and stands out from the competition because of its leading brand, the quality of its products and its strong distribution partnerships. Based on the information currently available, the Company expects to report sales of the Global Products segment of $ 1.8 billion for fiscal year 2021, up 20% compared to the previous year.

Advisers
Goldman Sachs & Co. LLC acts as financial advisor and Cravath, Swaine & Moore LLP acts as legal advisor to Valvoline.

About ValvolineMT
Valvoline Inc. (NYSE: VVV) is a global leader in vehicle maintenance fueling the future of mobility through innovative products and services for vehicles equipped with electric, hybrid and internal combustion powertrains. Founded in 1866, the company introduced the world’s first branded motor oil and has developed strong brand recognition and customer satisfaction ratings over the years across multiple service and product channels. The Company operates and franchises approximately 1,600 service center locations and is the # 2 and # 3 largest chain in the United States and Canada, respectively, by number of stores. With sales in more than 140 countries and territories, Valvoline’s solutions are available for every engine and transmission, including high-mileage vehicles and heavy-duty vehicles, and are offered at more than 80,000 locations worldwide. Creating the next generation of advanced automotive solutions, Valvoline has established itself as the world’s leading supplier of battery fluids to electric vehicle manufacturers, offering tailor-made products to help extend vehicle range and efficiency. To find out more or to find a Valvoline service center near you, visit valvoline.com.

Key trade measures
Valvoline tracks its operational performance and manages its business using certain key business metrics including system-wide store count and system-wide comparable store (“SSS”) sales. Management believes that these measures are useful in evaluating and understanding Valvoline’s operating performance and should be viewed as additions and not substitutes for sales or operating and net income of Valvoline, as determined in accordance with GAAP. United States.

While Valvoline does not recognize store level sales of franchised stores as sales in its consolidated statements of income, management believes that the SSS comparisons and the number of stores system-wide are useful in assessing the position on the market relative to competitors and the overall operational performance of stores and segments. System-wide SSS is defined as the sales of US retail service stores (company-operated and franchisee), with new stores, including franchise conversions, excluded from the measure until at the end of their first full financial year of operation, as this period is generally required. for new store sales levels to begin to normalize.

Forward-looking statements
Certain statements in this press release, other than statements of historical fact, including estimates, projections and statements relating to the business plans and results of operations of Valvoline, are forward-looking statements within the meaning of the law. Private Securities Litigation Reform Act of 1995. Valvoline has identified some of these forward-looking statements containing words such as “expects”, “estimates”, “expects”, “estimates”, “is likely”, “predicted”, ” projects “,” forecasts “,” may “,” “,” “should” and “intends” and the negative of these words or other comparable terminology. These forward-looking statements are based on expectations, estimates, current projections and assumptions of Valvoline at the date on which these statements are made and are subject to risks and uncertainties which may lead to results materially different from those expressed or implied in the forward-looking statements. ves. . Additional information regarding these risks and uncertainties is described in documents filed by the Company with the Securities and Exchange Commission (the “SEC”), including in “Risk Factors”, “Management’s Discussion and Analysis on financial position and results of operations ”and“ and Qualitative Disclosures about Market Risk ”of the latest periodic reports filed by Valvoline on Forms 10-K and 10-Q, which are available on the Valvoline website at http://investors.valvoline.com/sec-filings or on the SEC website at http://sec.gov. Valvoline assumes no obligation to update or revise these forward-looking statements for any reason, even if new information becomes available in the future, except as required by law.

MT Brand, Valvoline or its subsidiaries, registered in various countries
SM Service mark, Valvoline or its subsidiaries, registered in various countries

FOR MORE INFORMATION

Sean T. Cornett
Senior Director, Investor Relations
+1 (859) 357-2798
[email protected]

Michèle Gaither Sparks
Senior Director, Corporate Communications
+1 (859) 230-8097
[email protected]

Jamie Tully/Warren rizzi/Devin Broda
[email protected]

SOURCE Valvoline Inc.

Related links

http://www.valvoline.com


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