Aramco completes acquisition of Valvoline’s global products business

State-owned Saudi Arabian Oil Company (Aramco) has completed the acquisition of the global products division of US motor oil and lubricants group Valvoline for $2.65bn.

Valvoline Global Operations, which will continue to be headquartered in Lexington Kentucky, specialises in automotive and industrial solutions. It operates sales in more than 140 countries and territories, with its solutions offered at more than 80,000 locations.

The companies had announced the signing of an equity purchase agreement on August 1, 2022.

Read: Aramco to acquire Valvoline Global Products for $2.65bn

Aramco will now own the Valvoline brand with respect to the products business, and Valvoline will own the brand with respect to its retail services business.

“With the sale of the global products business to Aramco, each business can now better focus on future growth,” said Sam Mitchell, Valvoline CEO.

“Today, Valvoline becomes a pure-play, automotive services company with a right-sized capital structure and enhanced capital allocation. Additionally, Valvoline 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.”

The acquisition complements Aramco’s growing presence in the premium branded lubricants market space and opens opportunities to enhance its position globally.

“This acquisition will advance our international lubricants growth strategy, and leverage our global base oils production and R&D capabilities,” added Mohammed Y. 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 multi-national lubricant brands, a position it has proudly held for over a century and a half.”