Valvoline Acquires Breeze Autocare for $637.4M; Q2 Revenue +25%
Valvoline Inc. completed the acquisition of Breeze Autocare for $637.4 million, significantly expanding its service center network by 204 stores. This strategic move was funded by a new $740.0 million Term Loan B, leading to a substantial increase in the company's total debt. Following the acquisition, Valvoline divested 45 stores as required by the FTC, resulting in a pre-tax loss of $57.9 million. For the second fiscal quarter, net revenues from continuing operations increased by 25% to $503.8 million, and net income from continuing operations grew by 18% to $45.3 million. However, net income for the six-month period saw a significant decline, primarily due to the non-recurring loss from the divestiture and acquisition-related costs.
Key Highlights
- Valvoline acquired Breeze Autocare for $637.4 million, adding 204 service centers.
- Divested 45 acquired stores due to FTC requirements, incurring a $57.9 million pre-tax loss.
- Q2 Net revenues from continuing operations rose 25% to $503.8 million from $403.2 million YoY.
- Q2 Net income from continuing operations increased 18% to $45.3 million from $38.3 million YoY.
- Q2 Diluted EPS from continuing operations grew to $0.35 from $0.30 YoY.
- Total debt increased to $1,657.7 million from $1,074.0 million, primarily due to a new Term Loan B.
- Goodwill increased to $1,182.4 million from $658.0 million as of September 30, 2025.
- Six-month net income from continuing operations fell 90% to $13.1 million, impacted by divestiture loss.