Driven Brands Announces Closing of Sale of U.S. Car Wash Business
Driven Brands Holdings Inc. (NASDAQ: DRVN) has completed the sale of its U.S. car wash business to Whistle Express Car Wash. The transaction includes approximately $255 million in cash and a $130 million negotiable interest-bearing seller note, subject to post-closing adjustments.
The company plans to use the cash proceeds to reduce debt, targeting a net leverage of 3x or less by the end of 2026. The U.S. car wash business results will be reported as discontinued operations in fiscal year 2025.
As of Fiscal Year 2024, Driven Brands operated 5,200 locations across 14 countries, servicing approximately 70 million vehicles. The network generated approximately $2.3 billion in annual revenue from $6.5 billion in system-wide sales.
Driven Brands Holdings Inc. (NASDAQ: DRVN) ha completato la vendita della sua attività di autolavaggio negli Stati Uniti a Whistle Express Car Wash. La transazione include circa 255 milioni di dollari in contante e un nota venditore negoziabile a interesse di 130 milioni di dollari, soggetta ad aggiustamenti post-chiusura.
L'azienda prevede di utilizzare i proventi in contante per ridurre il debito, puntando a un leverage netto di 3 volte o meno entro la fine del 2026. I risultati dell'attività di autolavaggio negli Stati Uniti saranno riportati come operazioni cessate nell'anno fiscale 2025.
Nel corso dell'anno fiscale 2024, Driven Brands ha gestito 5.200 sedi in 14 paesi, servendo circa 70 milioni di veicoli. La rete ha generato circa 2,3 miliardi di dollari di entrate annuali da 6,5 miliardi di dollari di vendite complessive.
Driven Brands Holdings Inc. (NASDAQ: DRVN) ha completado la venta de su negocio de lavado de autos en EE. UU. a Whistle Express Car Wash. La transacción incluye aproximadamente 255 millones de dólares en efectivo y una nota del vendedor negociable a interés de 130 millones de dólares, sujeta a ajustes posteriores al cierre.
La empresa planea utilizar los ingresos en efectivo para reducir la deuda, con el objetivo de alcanzar un apalancamiento neto de 3 veces o menos para finales de 2026. Los resultados del negocio de lavado de autos en EE. UU. se informarán como operaciones discontinuadas en el año fiscal 2025.
A partir del año fiscal 2024, Driven Brands operaba 5,200 ubicaciones en 14 países, atendiendo aproximadamente 70 millones de vehículos. La red generó aproximadamente 2.3 mil millones de dólares en ingresos anuales de 6.5 mil millones de dólares en ventas totales.
드리븐 브랜드 홀딩스 Inc. (NASDAQ: DRVN)는 미국의 세차 사업을 Whistle Express Car Wash에 매각했습니다. 이번 거래에는 약 2억 5천5백만 달러 현금과 1억 3천만 달러의 협상 가능한 이자-bearing 판매자 노트가 포함되며, 마감 후 조정이 적용됩니다.
회사는 현금 수익을 사용하여 부채를 줄일 계획이며, 2026년 말까지 3배 이하의 순 레버리지를 목표로 하고 있습니다. 미국의 세차 사업 결과는 2025 회계연도에 중단된 운영으로 보고될 것입니다.
2024 회계연도 기준으로, 드리븐 브랜드는 14개국에 5,200개 위치를 운영하며, 약 7천만 대의 차량에 서비스를 제공하고 있습니다. 이 네트워크는 65억 달러의 시스템 전체 매출에서 약 23억 달러의 연간 수익을 창출했습니다.
Driven Brands Holdings Inc. (NASDAQ: DRVN) a finalisé la vente de son activité de lavage de voitures aux États-Unis à Whistle Express Car Wash. La transaction comprend environ 255 millions de dollars en espèces et une note vendeur négociable portant intérêt de 130 millions de dollars, sous réserve d'ajustements post-clôture.
L'entreprise prévoit d'utiliser les produits en espèces pour réduire sa dette, visant un effet de levier net de 3x ou moins d'ici la fin de 2026. Les résultats de l'activité de lavage de voitures aux États-Unis seront rapportés comme des opérations abandonnées pour l'exercice fiscal 2025.
Pour l'exercice fiscal 2024, Driven Brands exploitait 5 200 emplacements dans 14 pays, servant environ 70 millions de véhicules. Le réseau a généré environ 2,3 milliards de dollars de revenus annuels à partir de 6,5 milliards de dollars de ventes totales.
Driven Brands Holdings Inc. (NASDAQ: DRVN) hat den Verkauf seines US-Autowaschgeschäfts an Whistle Express Car Wash abgeschlossen. Die Transaktion umfasst etwa 255 Millionen Dollar in bar und eine 130 Millionen Dollar verhandelbare, verzinsliche Verkäufernote, die anpassungsfähig nach dem Abschluss ist.
Das Unternehmen plant, die Barerlöse zur Reduzierung von Schulden zu verwenden, mit dem Ziel, bis Ende 2026 eine Netto-Verschuldung von 3x oder weniger zu erreichen. Die Ergebnisse des US-Autowaschgeschäfts werden im Geschäftsjahr 2025 als aufgegebene Betriebe ausgewiesen.
Im Geschäftsjahr 2024 betrieb Driven Brands 5.200 Standorte in 14 Ländern und bediente etwa 70 Millionen Fahrzeuge. Das Netzwerk erzielte etwa 2,3 Milliarden Dollar Jahresumsatz bei 6,5 Milliarden Dollar Gesamtumsatz.
- Sale of car wash business generates $255M in immediate cash proceeds
- Additional $130M secured through interest-bearing seller note
- Strategic focus on high-performing Take 5 Oil Change business
- Debt reduction plan with clear leverage target of 3x or less by 2026
- Strong network presence with 5,200 locations across 14 countries
- Divestment of significant business segment impacts revenue stream
- Transaction subject to post-closing adjustments that could affect final proceeds
- Uncertainty regarding the collectibility of the $130M seller note
Insights
Driven Brands' $385 million divestiture of its U.S. car wash business represents a significant strategic shift with material balance sheet implications. The transaction structure—
This move aligns with management's stated goal of achieving a 3x or lower net leverage ratio by end of 2026, as they've explicitly committed to using proceeds for debt reduction. For a company with a
The strategy to focus on the Take 5 Oil Change business supported by their franchise operations appears designed to create a more streamlined, potentially higher-margin business model. Franchise businesses typically generate stable, recurring cash flows with lower capital requirements compared to company-owned operations like car washes, which require significant real estate and maintenance investments.
Investors should note the accounting change to discontinued operations for fiscal 2025, which will affect year-over-year comparability. With Driven Brands' network still spanning 5,200 locations across 14 countries generating
“The completion of this transaction marks an important milestone for Driven Brands, enabling us to focus on our industry-leading Take 5 Oil Change business underpinned by our stable, cash-generating franchise businesses,” said Jonathan Fitzpatrick, President and Chief Executive Officer. “I want to thank everyone involved for their hard work in completing this transaction. We are confident this disposition will better position the company to execute on our strategic initiatives.”
Under the terms of the agreement, Whistle paid Driven Brands approximately
In fiscal year 2025, the Company plans to report the results of the
Advisors
William Blair & Company, L.L.C. served as financial advisor to Driven Brands, and Latham & Watkins LLP served 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) our ability to realize the value of the seller note; (ii) potential post-closing obligations and liabilities; (iii) our strategy, outlook and growth prospects; (iv) our operational and financial targets and dividend policy; (v) general economic trends and trends in the industry and markets; and (vi) 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 28, 2024 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
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