Saudi oil giant Aramco has acquired US-based Valvoline Inc global products business (Valvoline Global Products or VGP) for $2.69 billion, as the automotive oil manufacturer focuses on its retail services business, it announced on Monday.
The transaction is subject to certain customary adjustments set forth in the equity purchase agreement, the statement said.
Kentucky-based Valvoline is a 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 research and development capabilities, strong partnerships with major original equipment manufacturers (OEMs), and a 150-year legacy of global brand recognition as it pursues opportunities to extend the brand globally, the Saudi oil company said in a statement.
The company added the acquisition will complement Aramco’s line of premium branded lubricant products, optimise its global base oils production capabilities, and expand Aramco’s own research and development activities and partnerships with OEMs.
“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 research and development capabilities and strengthen our existing relationships with OEMs, Aramco’s senior vice president of downstream Mohammed Y. Al Qahtani said.
Al Qahtani added that the US brand’s strength and global recognition will continue to be developed and extended under Aramco’s stewardship.
Valvoline will focus on its market leading retail service business, including further enhancing its growth trajectory and world-class service model, the statement said.
“The sale of (VGP) represents the successful outcome of our strategy to unlock the full, long-term value of our strong but differentiated Retail Services and Global Products businesses,” said Valvoline’s chief executive officer, Sam Mitchell.
Mitchell added that Valvoline’s two leading businesses 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,” he said.
Completion of the transaction is subject to customary closing conditions, including the receipt of regulatory approvals, the statement said.
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