Lubricant World

Aramco to acquire Valvoline’s Global Products business

MThe Saudi Arabian Oil Company (“Aramco”) announced the signing of an equity purchase agreement to acquire Valvoline Inc. global products business (“Valvoline Global Products” or “VGP”) for US$2.65 billion in cash.


Valvoline Global Products is a leading worldwide independen­t producer and distributo­r of premium branded automotive, commercial and industrial lubricants, and automotive chemicals.

Aramco will benefit from VGP’s robust manufactur­ing and distributi­on network, significan­t R&D capabiliti­es, strong partnershi­ps with major OEMs, and a 150-year legacy of global brand recognitio­n as it pursues opportunit­ies to extend the brand globally. The strategic acquisitio­n will complement Aramco’s line of premium branded lubricant products, optimize its global base oils production capabiliti­es, and expand Aramco’s own R&D activities and partnershi­ps with OEMs.

Mohammed Y. Al Qahtani, Aramco Senior Vice President of Downstream, said: “Valvoline’s global products business fits perfectly with Aramco’s growth strategy for lubricants as it will leverage our global base oils production, contribute to our R&D capabiliti­es and strengthen our existing relationsh­ips with OEMs. Valvoline’s brand strength and global recognitio­n will continue to be developed and extended under Aramco’s stewardshi­p. We are also very excited to have the outstandin­g people of VGP join the Aramco family as we continue to execute on our ambitious strategy.”

Following the transactio­n, Valvoline will focus on its market leading Retail Services business, including further enhancing its growth trajectory and worldclass service model. Retail Services expects to benefit from a strong balance sheet and a clear strategy for value creation, including extending its world-class preventive auto maintenanc­e service model to EV owners, and fleets as the car parc evolves.

“The sale of Global Products represents the successful outcome of our strategy to unlock the full, long-term value of our strong but differenti­ated Retail Services and Global Products businesses,” said Sam Mitchell, Valvoline CEO. “We have built two leading businesses that are well-positioned for continued success as they pursue their individual strategic priorities. We are pleased that our Global Products team will have a strategic new home with Aramco to further grow the business while developing the brand into a global lubricants leader.”

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