Valvoline (VVV) announced that it has signed a definitive agreement to acquire Breeze Autocare from Greenbriar Equity Group. Breeze Autocare is an operator of nearly 200 stores across 17 states, predominantly under the Oil Changers brand. Valvoline will acquire the business for approximately $625M in cash, which Valvoline intends to fund with a newly issued Term Loan B. Breeze Autocare generated $200M in net sales for its most recent year end. The transaction is anticipated to close in fiscal Q3 subject to satisfaction of customary closing conditions and regulatory approvals. The purchase price is expected to be funded with a newly issued Term Loan B. Valvoline will pause its share repurchase activity and anticipates reaching a rating agency adjusted net leverage ratio of 2.5x-3.5x within 24 months post-close.
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