National Oil & Lube News

March 2017

Digital issues of National Oil & Lube News, the trade magazine for the preventive maintenance industry

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Page 21 of 67

22 NOLN | W hile there probably won't be "under new man- agement" or even "under new ownership" signs popping up at some quick lube shops around the country, the industry has seen a few noticeable mergers in recent months. In December 2016, Driv- en Brands, a portfolio company of the Roark Capital Group, announced it had acquired Texas-based Ex- press Lube, a regional chain founded in 1990 and was operating 31 loca- tions in the Lone Star state. at purchase by Driven Brands followed its acquisition of Ohio-based Lube Stop in September of last year. Moreover, Express Lube represented the seventh major acquisition for Driven Brands since Roark had acquired the business. With this expansion, Driven Brands currently operates more than 2,000 locations across North America. "Including the acquisition of Express Lube, we've now expanded the Quick Lube Division at Driven Brands by more than 80 percent," said Quick Lube Group president Marc Graham in a statement released last December. "is expansion is a direct result of Driven Brands' world-class technology, synergistic approach to building business, purchasing pow- er and operational support. e addition of this market-leading quick oil change business in San Antonio further solidifies our presence in Texas." Driven Brands hasn't been the only operator that has sought to grow its footprint through mergers and acquisitions during the past year. In early January, Valvoline signed a definitive agreement to acquire Time-It Lube, which would allow Valvoline to expand its presence in east Texas, while marking its entry into Louisiana. At press time, the acquisition was expected to be completed by the end of the second quarter of fiscal year 2017. is was also one of several notable acquisitions made by Valvoline. "In fiscal year 2016, Valvoline Instant Oil Change added 126 stores, growing to 1,068 service centers," Tony Puckett, president of Valvoline Quick Lubes, told National Oil & Lube News. "at includes the February (2016) acquisition of Oil Can Henry's 89 stores. We also added 19 stores to the Valvoline Express Care platform, bringing the total number of stores in that network to 347." Regional opportunities have also played a key part in Valvoline's expan- sion, as noted by the Oil Can Henry's acquisition, which allowed the com- pany to increase its presence in the Pacific Northwest. Yet, Puckett noted the other acquisitions were spread across the country, from small towns to large urban areas. "One of our key strategic priorities is to expand our quick lube presence by growing Valvoline Instant Oil Change and Valvoline Express Care loca- tions, both organically and through acquisitions," he added. e company has said it will continue to seek out locations that make sense. "Texas is a market we're interested in, and this is why we sought to ac- quire Time-It, which has been a strong player in the region," explained Greg Bickett, vice president of Corporate Development and Financial Planning & Analysis at Valvoline Quick Lubes. "ere is no region we're more focused on than others, but it helps us when there are multiple stores in a region. It is more challenging to go to one or two operators, which is why one of Time-It's benefits was also its size. In that case, it was more important to us than just its location." New Mergers and Acquisitions change the Quick Lube Landscape by Peter Suciu

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