Driven Brands announces agreement to divest U.S. car wash business for $385 million
Driven Brands Holdings Inc. (NASDAQ: DRVN) (“Driven Brands” or the “Company”), the largest automotive services company in North America, today announced that it has entered into a definitive agreement to sell its U.S. car wash business to Express Wash Operations, LLC dba Whistle Express Car Wash (“Whistle”) 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 U.S. car wash business, and we are confident it will better position the Company to execute on our strategic initiatives and deliver long-term value to our shareholders.”
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 $255 million in cash and deliver to Driven Brands an interest-bearing seller note in the principal amount of $130 million, subject to customary adjustments. The transaction is expected to close in the second quarter of 2025, subject to customary closing conditions.
Fitzpatrick added, “On behalf of the Board of Directors and leadership team, I thank our U.S. car wash team members for their ongoing hard work and commitment to serving our customers. We also appreciate the loyalty of our customers and expect a smooth transition for all stakeholders.”
Advisors
William Blair & Company, L.L.C. is serving as financial advisor to Driven Brands, and Latham & Watkins LLP is serving as legal advisor.
Note: View the press release on the Driven Brands Investor Relations website.