LEXINGTON, Ky. — Valvoline Inc. has struck deals to buy 60 quick-lube service centers in 10 states in three separate deals and plans to refranchise a dozen of them once the deals are closed.
The deals are agreements to buy:
- 27 Mister Oil Change Express locations in seven states from Car Wash Partners Inc. of Tucson, Ariz.;
- 21 franchised Valvoline Instant Oil Change (VIOC) service centers in the greater Kansas City area and Topeka and Wichita, Kan., areas from franchisee Westco Lube Inc.; and
- 12 Einstein's Oilery locations in the Boise, Idaho, area from L & F Enterprises;
Financial terms of the deals, expected to close by year-end or in early 2021, were not disclosed.
Valvoline plans to convert the Mister Oil Express and Einstein's Oilery locations to its VIOC format and signage after the deals close. It also plans to convert a dozen of the 27 Mister Oil Express locations to franchised stores under the control of existing franchisees in the areas where those stores are located.
The Mister Oil Change centers being acquired are located in Florida, Minnesota, Missouri, Pennsylvania, Texas, Washington and Wisconsin. Car Wash Partners had acquired the oil change outlets in multiple transactions over several years. The transaction affects approximately 260 Mister Oil Change Express employees.
Valvoline did not specify which centers it intends to keep as company-owned VIOCs and which it will franchise, saying only that they are in "diverse markets" across the country, allowing it to support its franchise partners' expansion plans quicker than if they chose to build.
"A core element of Valvoline's business strategy is to continue to grow our industry-leading quick-lube network in both existing and new markets," Tony Puckett, senior vice president and president, Valvoline Quick Lubes, said.
"Mister Oil Change Express presented both of our companies with an opportunity to play to our collective service strengths. Valvoline will purchase their quick-lube centers while they will continue to operate the car wash portion of their business."
Mister Oil Change Express President and CEO John Lai said his company and Valvoline "share the same values about people and service, so it makes this a natural fit. We will continue to operate as close neighbors and trust Valvoline's commitment to providing Mister Oil Change Express team members with new opportunities for career development and growth."
Mister Car Wash operates 340 car washes in 21 states.
Michael Meuret, co-owner of Einstein's Oilery, said: "When we were ready (to sell), we knew we wanted to sell to a company that was best-in-class. After getting to know the Valvoline leadership team and culture, we knew we could trust Valvoline to continue our commitment to our employees and dedication to the customers we have proudly served since 2007."
Westco Lube Owner Dick Jacobsen said: "Knowing the Valvoline culture as well as I do, I couldn't be more comfortable with this transition and confident in the future success of all involved."
Mr. Jacobsen has been a VOIC franchisee for more than 20 years.
These acquisitions will push Valvoline's network of company-owned and franchised quick-lube locations in North America to more than 1,500, operating under the VIOC brand in the U.S. and in Canada under the Valvoline Great Canadian Oil Change brand.