Aramco to acquire Valvoline Global Products for $2.65bn
Saudi Arabian Oil Company (Aramco) announced the signing of an equity purchase agreement to acquire the global products division of US motor oil and lubricants group Valvoline for $2.65bn.
The transaction is subject to certain customary adjustments set forth in the equity purchase agreement. Valvoline Global Products (VGP) is a leading worldwide independent producer and distributor of premium branded automotive, commercial and industrial lubricants, and automotive chemicals.
Aramco will benefit from VGP’s robust manufacturing and distribution network, significant R&D capabilities, strong partnerships with major OEMs, and a 150-year legacy of global brand recognition as it pursues opportunities to extend the brand globally.
Mohammed Al Qahtani, Aramco senior VP of Downstream said, “Valvoline’s brand strength and global recognition will continue to be developed and extended under Aramco’s stewardship. We are also very excited to have the outstanding people of VGP join the Aramco family as we continue to execute on our ambitious strategy.”
Following the transaction, Valvoline will focus on its market leading retail services business, including further enhancing its growth trajectory and world-class service model. Retail services expects to benefit from a strong balance sheet and a clear strategy for value creation, including extending its world-class preventive auto maintenance service model to EV owners, and fleets as the car parc evolves.
Sam Mitchell, CEO of Valvoline said, “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.”
Completion of the transaction is subject to customary closing conditions, including the receipt of regulatory approvals.
In other news, Saudi Aramco and Cognite, an industrial software services provider, recently partnered to launch CNTXT, a joint venture (JV) headquartered in Riyadh.
