Lubricant brand Valvoline Inc has sold its global products division to oil major Saudi Aramco for $2.65bn.
Valvoline wishes to be a ‘pure-play’ automotive service provider business, focussing on EV owners, OEMs and fleets ‘as the car parc evolves’.
On completion of the sale, Valvoline expects to use the majority of the anticipated net after-tax cash proceeds of approximately $2.25 billion to accelerate the return of capital to shareholders through share repurchases, with the remaining portion used for debt reduction and to invest in the service side of its business.
“The sale of Global Products will represent 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 Sam Mitchell, Valvoline CEO. “We have built two leading businesses that are well-positioned for continued success as they pursue their individual strategic priorities.
Saudi Aramco is currently the largest company in the world by market cap, surpassing Apple earlier in the year.