Saudi Arabian Oil Company (Aramco) has signed an equity purchase agreement to acquire the Global Products business of Valvoline for $2.65 billion.
Valvoline Global Products (VGP) is a leading worldwide independent producer and distributor of premium branded automotive, commercial and industrial lubricants, and automotive chemicals.
Aramco said that it will benefit from VGP’s robust manufacturing and distribution network, significant R&D capabilities, strong partnerships with major original equipment manufacturers (OEM), and a 150-year legacy of global brand recognition as it pursues opportunities to extend the brand globally.
Mr. Mohammed Y. Al Qahtani, Aramco Senior Vice President of Downstream, stated that, “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 R&D capabilities and strengthen our existing relationships with OEMs.”
Following the transaction, Valvoline will focus on its market-leading Retail Services business, including further enhancing its growth trajectory and world-class service model.
“The strategic acquisition will complement Aramco’s line of premium branded lubricant products, optimize its global base oils production capabilities, and expand Aramco’s own R&D activities and partnerships with OEMs,” according to the company statement.
The completion of the transaction is subject to customary closing conditions, including the receipt of regulatory approvals.
“The sale of Global Products 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. 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,” commented Mr. Sam Mitchell, CEO of Valvoline.