Valvoline realigns its business segments and announces organization adjustments
EUROPE, May 20, 2021 Valvoline Inc. (NYSE: VVV), leading provider of automotive services and premium branded lubricants, announced the realignment of its global operations, including updated business segments.
Beginning in the third quarter of fiscal 2021, Valvoline will manage its business through two operating segments: Retail Services, which renames the former Quick Lubes segment, and Global Products, which includes the operations of the former Core North America and International segments.
“Our business realignment strengthens our strategy and is the next step in our transformation to a more service-driven business model,” said Sam Mitchell, CEO. "Our ongoing growth opportunities in retail services are supported by vertical product integration and strong cash generation from the global products segment.
“This realignment and related changes enhance our ability to leverage our strong brand equity and product platforms to capture opportunities in both segments, drive focus in deploying capital and provide improved transparency for investors while also positioning us for faster growth going forward.”
Business Realignment and Reporting Changes
Valvoline’s global operations will be managed in the following segments:
- Retail Services contains the operations of the former Quick Lubes segment. The renamed segment better reflects the broad array of existing, and potential future, preventive maintenance services performed in Valvoline’s retail network, including Company-operated and independent franchise and Express Care stores that service vehicles with Valvoline products. Retail Services is a high-growth, high-margin segment with significant reinvestment opportunity.
- Global Products contains the former Core North America and International segments. The segment focuses on sales of lubricants, coolants and other preventive maintenance products for light- and heavy-duty vehicles on a global basis. Global Products is a capital-light, strong free-cash-flow-generating segment to fund Valvoline’s transition to a more service-driven business model.
Segment Realignment and Organization Adjustments
In addition to above mentioned changes, the Company announced several organizational adjustments, to further bolster its core values and help to propel Valvoline into the future. Diego Brodoni, Valvoline Europe’s VP and GM, has been promoted to lead MEA in addition to his current responsibilities in Europe. In this role, Diego’s leadership will help position Valvoline business for accelerating growth across EMEA region.
Valvoline Inc. (NYSE: VVV) is a leading provider of automotive services and marketer and supplier of premium branded lubricants worldwide, with sales in more than 140 countries. Established in 1866, the Company’s heritage spans more than 150 years, during which time it has developed powerful brand recognition across multiple product and service channels. Valvoline operates and franchises more than 1,500 quick-lube locations and is the No. 2 chain by number of stores in the United States under the Valvoline Instant Oil ChangeSM brand and the No. 3 chain by number of stores in Canada under the Valvoline Great Canadian Oil Change brand. It also markets Valvoline lubricants and automotive chemicals, including Valvoline EV Performance Fluids; Valvoline Hybrid Vehicle Full Synthetic motor oil; Valvoline High Mileage with MaxLife technology motor oil for engines over 75,000 miles; Valvoline Advanced Full Synthetic motor oil; Valvoline Premium Blue™ heavy-duty motor oil; Valvoline Multi-Vehicle Automatic Transmission Fluid; and Zerex™ antifreeze. To learn more, visit www.valvoline.com
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FOR FURTHER INFORMATION
Valvoline Europe Marketing