Dubai: Saudi Aramco has completed the $2.65 billion deal for Valvoline Inc.’s global products business. This was done through one of the Aramco subsidiaries. The equity purchase agreement to this effect was signed by the entities in August last year.
A 157-year old entity, Valvoline Global Operations, which will continue to be headquartered in Lexington, Kentucky, is a ‘worldwide leader in automotive and industrial solutions’. Through the takeover, Aramco wants to speed up becoming one of the world’s leading integrated and branded lubricants players.
“This acquisition will advance our international lubricants growth strategy, and leverage our global base oils production and R&D capabilities,” said Mohammed Al Qahtani, Aramco Executive Vice-President of Downstream. “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 multinational lubricant brands, a position it has proudly held for over a century and a half.”
The acquisition complements Aramco’s presence in premium branded lubricants.
“Today, Valvoline Inc. becomes a pure-play, automotive services company with a right-sized capital structure and enhanced capital allocation,” said Sam Mitchell, Valvoline Inc. CEO. “Additionally, 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.”