Driven Brands announces agreement to divest international car wash business
- Reiterates fiscal year 2025 outlook excluding International Car Wash--
- Divestiture to reduce net leverage ratio
Driven Brands Holdings Inc. (NASDAQ: DRVN) (“Driven Brands” or the “Company”) today announced that it has entered into a definitive agreement to sell IMO, its international car wash business, to Franchise Equity Partners.
“This transaction sharpens our focus on what we do best — scaling Take 5 and driving consistent cash generation through our Franchise Brands,” said Danny Rivera, President and Chief Executive Officer. “IMO is a good business, but it is not core to our long-term strategy. By exiting it, we simplify our portfolio, strengthen our balance sheet, and position Driven Brands to create greater value for shareholders.”
Under the terms of the agreement, Franchise Equity Partners will acquire IMO for € 406 million, based on IMO’s balance sheet as of June 30, 2025, which amount is not subject to post-closing adjustments for cash, debt or working capital. The agreement includes customary ‘locked box’ protections against certain types of financial leakage, and a customary ‘ticker’ whereby the purchase price increases daily by a fixed amount in Euros from July 1, 2025, to the closing date.
The transaction is expected to close in the first quarter of 2026, subject to receipt of specified regulatory approvals.
“The divestiture of our international car wash business helps accelerate our path towards de-levering our balance sheet while maintaining operational focus on our core, North American businesses. This transaction will reduce pro forma leverage by approximately 0.3x and demonstrates our commitment to achieve 3x net leverage by the end of 2026,” said Mike Diamond, Chief Financial Officer.