Valvoline Announces Purchase of Partner's Interest in VCA Solutions Joint Venture

Rhea-AI Summary

Valvoline Inc. (NYSE: VVV) has acquired the remaining 50% interest in VCA Solutions, a distributor of automotive batteries, effective May 1, 2022. This acquisition positions Valvoline to enhance customer service at Valvoline Instant Oil Change and other service centers, meeting the growing demand for battery solutions alongside oil changes. With nearly 290 million vehicles in the U.S. utilizing lead-acid batteries, the acquisition expands Valvoline’s product offerings, including services for hybrid and electric vehicles, thus aligning with future mobility trends.

Positive

• Acquisition provides full control over VCA Solutions, enhancing strategic direction.
• Expands service offerings for battery maintenance, crucial for a growing market.
• Supports Valvoline's growth in hybrid and electric vehicle services.

Negative

• None.

Acquisition of battery distributor enables a new last-mile delivery platform for Valvoline and an enhanced customer experience for service centers and installers

LEXINGTON, Ky., May 24, 2022 /PRNewswire/ -- Valvoline Inc. (NYSE: VVV), a global leader in vehicle care powering the future of mobility through innovative services and products, announced today that it has purchased the outstanding 50 percent interest in its VCA Solutions joint venture from its former joint venture partner. VCA Solutions is a distributor of top-tier automotive batteries and battery testing equipment. The purchase was finalized, effective May 1.

Today, nearly all of the 290 million vehicles on U.S. roads have lead-acid batteries*. By acquiring VCA Solutions, Valvoline is uniquely positioned to help Valvoline Instant Oil Change^SM (VIOC) locations, Valvoline Express Care™ stores, and installers meet the needs of consumers who come to automotive service centers for preventive maintenance services beyond a traditional oil change.

"Batteries play a critical role in vehicle reliability both in vehicles today and in the future," said Jamal Muashsher, President, Global Products. "Automotive installers, including VIOC service centers, have a continuous need to service consumers' vehicles beyond oil changes. The acquisition of VCA Solutions adds to our robust offering of preventive maintenance products and solutions designed to meet our customers' needs."

VCA Solutions was created in 2019 through an exclusive partnership between Valvoline and Club Assist, a leading global supplier of automotive lead-acid and AGM batteries. Today, nearly 1,300 VIOC company-operated and franchise-owned service center locations use VCA for their battery solutions. Prior to the acquisition, Valvoline had 50 percent ownership of VCA. Moving forward, it will oversee full strategic direction and operations.

"VCA Solutions will continue to support and grow the superior standard of Valvoline products and offerings," says Chris Eckert, General Manager, Head of VCA Business. "We will operate at the same high-level of service as we did before. The VCA Solutions team is thrilled to fully join Valvoline, a business that is aligned with the quality-focused culture we pride ourselves on."

The acquisition enables new efficiencies and automotive solutions for installers, Valvoline Retail Services company-owned, franchise-owned and independently operated service centers, while growing the product portfolio for hybrid and electric vehicles in the future. Further, Valvoline customers will now have expanded access to top-tier vehicle maintenance services, including battery purchase, maintenance, and testing.

"VCA has delivered added customer value and business expansion with their high-touch battery solution for the Valvoline service center ecosystem," continues Muashsher. "With this business as part of our offering, it enables us to service more customers now and into the electrified future."

Learn more about how Valvoline is preparing customers, installers, and franchisees for the future of mobility. 

*Waste360.com, 2022.

About Valvoline
Valvoline Inc. (NYSE: VVV) is a global leader in vehicle care powering the future of mobility through innovative services and products for vehicles with electric, hybrid and internal combustion powertrains. Established in 1866, the Company introduced the world's first branded motor oil and developed strong brand recognition and customer satisfaction ratings over the years across multiple service and product channels. The Company operates and franchises approximately 1,600 service center locations and is the No. 2 and No. 3 largest chain in the U.S. and Canada, respectively, by number of stores. With sales in more than 140 countries and territories, Valvoline's solutions are available for every engine and drivetrain, including high-mileage and heavy-duty vehicles, and are offered at more than 80,000 locations worldwide. Creating the next generation of advanced automotive solutions, Valvoline has established itself as the world's leading supplier of battery fluids to electric vehicle manufacturers, offering tailored products to help extend vehicle range and efficiency. To learn more, or to find a Valvoline service center near you, visit valvoline.com.

About Club Assist
As the North American division of a global roadside and automotive support services company, Club Assist is the preferred supplier of industry-leading automotive lead-acid and AGM batteries, state-of-the-art battery testing and diagnostic equipment, and tools related to battery replacement for trusted motoring clubs and automotive services companies throughout the U.S. and Canada. Owned and supported by the strength and resources of Australian motoring clubs, Club Assist is synonymous with automotive battery technology expertise. By maintaining relationships with an international array of strategic suppliers, Club Assist sources the highest quality automotive battery products, which meet ISO9001 quality systems and ISO14001 environment system accreditation. With a global presence, Club Assist is committed to providing clients with advanced products and services to keep them ahead of the rapidly evolving automotive industry. To learn more, visit clubassist.com.

™ Trademark, Valvoline or its subsidiaries, registered in various countries
^SM Service mark, Valvoline or its subsidiaries, registered in various countries

FOR FURTHER INFORMATION  

Investor Relations	Media Relations
Sean TCornett	Michele Sparks
+1 859.357.2798	+1 859.230.8097
scornett@valvolinecom	michele.sparks@valvolinecom

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SOURCE Valvoline Inc.

FAQ

What is the recent acquisition by Valvoline (VVV)?

Valvoline has acquired the remaining 50% interest in VCA Solutions, a battery distributor, enhancing its service offerings.

How will VCA Solutions benefit Valvoline's customers?

The acquisition will enable better battery maintenance services and expand Valvoline's product offerings to meet customer needs.

When was the acquisition of VCA Solutions finalized by Valvoline?

The acquisition was finalized on May 1, 2022.

What impact does Valvoline's acquisition of VCA Solutions have on its business strategy?

The acquisition allows Valvoline to have full control over battery solutions, crucial for expanding its offerings in the automotive service market.