Saudi Arabia’s Aramco has acquired Valvoline Inc.’s global products business Valvoline Global Operations for $2.65 billion, Aramco announced in a press release on March 2. 

Headquartered in Lexington, Kentucky, Valvoline Global Operations is in the lubricants market and provides automotive and industrial solutions. Aramco’s acquisition of the 157-year-old brand advances its international lubricants growth strategy and base oils production. 

“It also provides an exciting opportunity to strengthen our relationship with original equipment manufacturers worldwide by extending the reach of Valvoline Global Operations as a preeminent company among multi-national lubricant brands, a position it has proudly held for over a century and a half,” said Mohammed Y. Al Qahtani, Aramco executive vice president of downstream. 

As part of their agreement, Aramco will own Valvoline’s brand for its products business and Valvoline Inc. will own the Valvoline brand for retail services. 

“Today, Valvoline Inc. becomes a pure-play, automotive services company with a right-sized capital structure and enhanced capital allocation,” said Sam Mitchell, Valvoline Inc. CEO. “Additionally, Valvoline Inc. expects to offer significant capital returns to our shareholders through equity buybacks over the next 18 months. All this combined allows us to focus our efforts on and further strengthen our brand as a premier auto after-market services provider.”

The two companies previously announced an equity purchase agreement in August 2022.