Valvoline announces USD400 million share repurchase authorisation

Valvoline Inc., a leader in automotive preventive maintenance based in Lexington, Kentucky, U.S.A., has announced that its board of directors has authorised a share repurchase program totaling USD400 million. This strategic move is a testament to Valvoline’s confidence in its growth strategy and ability to generate strong free cash flow, according to Lori Flees, president and CEO of Valvoline.

The share repurchase plan reflects the company’s commitment to a disciplined capital allocation strategy, which includes expanding its business operations, reducing leverage within the target range, and returning excess cash flow to shareholders. The repurchase of common stock will be executed at the company’s discretion, depending on market conditions and other factors. Transactions may occur in open markets or privately negotiated deals, and the authorisation has no expiration date.

Valvoline continues to enhance shareholder value by focusing on its core business strengths, accelerating network growth, and innovating to meet customer needs. With approximately 1,900 service centres across North America, Valvoline has maintained consistent growth, delivering about 27 million services in fiscal 2023 and generating USD1.4 billion in revenue. The company is celebrated for its quick, efficient, and trusted services, including 15-minute oil changes and other automotive maintenance solutions.

As of August 2024, Valvoline has approximately 129.8 million outstanding shares. The shares are traded on the New York Stock Exchange under the ticker symbol VVV. Valvoline’s stock has seen a positive change of about 22.53% over the past year. The share price is around USD45.95. The company’s market cap is approximately USD5.9 billion.

Valvoline sold its global products business, which includes its lubricants division, to Saudi Aramco in 2022. The sale was finalised with an agreement valued at USD2.65 billion in cash. The transaction aimed to allow Valvoline to focus on its retail services business, while Aramco integrated Valvoline’s lubricants operations into its global portfolio, leveraging its base oils production capabilities and strengthening its position in the lubricants market.