Driven Brands Announces Agreement to Divest U.S. Car Wash Business for $385 Million
“This transaction will enable Driven Brands to reduce debt and enhance our focus on our growing Take 5 Oil Change® brand and our stable, cash-generating franchise brands,” said Jonathan Fitzpatrick, President and Chief Executive Officer. “This decision follows a deliberate and thoughtful strategic review of value-maximizing options for the
Cash proceeds from the transaction will be used primarily to pay down debt as Driven Brands works to achieve 3x or less net leverage by the end of 2026.
Under the terms of the agreement, Whistle has agreed to pay Driven Brands
Mr. Fitzpatrick added, “On behalf of the Board of Directors and leadership team, I thank our
Driven Brands will provide additional information about the transaction and 2025 guidance on its fourth quarter and full year 2024 earnings call scheduled for today.
Advisors
William Blair & Company, L.L.C. is serving as financial advisor to Driven Brands, and Latham & Watkins LLP is serving as legal advisor.
About Driven Brands
Driven Brands™, headquartered in
Disclosure Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are generally identified by the use of forward-looking terminology, including the terms “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “likely,” “may,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and, in each case, their negative or other various or comparable terminology. All statements other than statements of historical facts contained in this press release, including statements regarding our strategy, future operations, future financial position, future revenue, projected costs, prospects, plans, objectives of management, and expected market growth are forward-looking statements. In particular, forward-looking statements include, among other things, statements relating to: (i) the completion of the Transaction, including Purchaser’s ability to obtain the required financing; (ii) our ability to realize the value of the seller note; (iii) potential post-closing obligations and liabilities; (iv) our strategy, outlook and growth prospects; (v) our operational and financial targets and dividend policy; (vi) general economic trends and trends in the industry and markets; and (vii) the competitive environment in which we operate. Forward-looking statements are not based on historical facts but instead represent our current expectations and assumptions regarding our business, the economy and other future conditions, and involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. It is not possible to predict or identify all such risks. These risks include, but are not limited to, the risk factors that are described under the section titled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 30, 2023 and in our other filings with the Securities and Exchange Commission, which are available on its website at www.sec.gov. Given these uncertainties, you should not place undue reliance on these forward-looking statements.
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Shareholder/Analyst inquiries:
Dawn Francfort
ICR, Inc.
investors@drivenbrands.com
(203) 682-8200
Media inquiries:
Taylor
taylor.blanchard@drivenbrands.com
(704) 644-8129
Source: Driven Brands