The Saudi Arabian Oil Company (Saudi Aramco), through one of its wholly owned subsidiaries, has completed the acquisition of Valvoline Global Products Company (Valvoline Global Operation), a subsidiary of the American Valvoline Company (NYSE: VVV), for a value of $2.65 billion dollar.
Through this acquisition, which comes after the two companies signed the share purchase agreement announced on August 1, 2022, Saudi Aramco aims to become one of the most prominent integrated brands in the world in the field of lubricants.
Under the deal, Saudi Aramco will own the brand (Valvoline) in connection with its product business, and (Valvoline) will own the brand in connection with its retail services business.
Saudi Aramco and Valvoline Company plan to work together to continue spreading ownership of the (Valvoline) brand globally.
Valvoline Global Operation will continue its operations through its headquarters in Lexington, Kentucky.
It is a global leader in automotive and industrial solutions, creating future-ready products and providing best-in-class services to partners around the world.
Mohammed Al-Qahtani, Executive Vice President, Refining, Chemicals, and Marketing at Saudi Aramco, said: “This acquisition will enhance our international lubricant strategy.”
Valvoline Chief Executive Officer Sam Mitchell said: “This is a historic day for our 157-year-old brand. With the sale of the global products business to Saudi Aramco.
Every company can now focus better on its future growth. Today, Valvoline has become a specialized automotive service company with an appropriately sized capital structure, with enhanced capital allocation.”
He added, “We expect Valvoline to generate significant capital returns for our shareholders through share buybacks over the next 18 months. All this will allow us to focus our efforts on strengthening our brand as a major provider of automotive aftermarket services.”