Toronto, Ontario – Driven Brands Holdings Inc. is getting out of the car wash business in order to focus on the oil change sector and to reduce its debts.
The US$2.3 billion automotive aftermarket conglomerate has sold its U.S.-based car wash business to Whistle Express for US$385 million. About US$255 million will be paid to Driven Brands in cash with the rest to come in the form of a US$130 million interest-bearing seller note.
The move comes as Driven Brands seeks to reduce its leverage ratio to less than three times the value of its total assets. According to a press release, the move will allow Driven Brands to reinvest in building its Take 5 Oil Change buisiness.
“It’s a key step as we focus on long-term growth and cash generation,” said Jonathan Fitzpatrick, president and chief executive officer of Driven Brands.
Driven Brands, the largest automotive services provider in North America, continues to operate a wide-ranging portfolio that includes Take 5 Oil Change, Meineke, Maaco, 1-800-Radiator & A/C, Auto Glass Now, and CARSTAR. At the end of 2024, the company oversaw 5,200 business locations based in 14 countries.
