VVV - Valvoline sells Global Products Business for $2.65B sees Q2 EPS above consensus

Valvoline ( NYSE: VVV ) said on Monday it agreed to sell its global products business to Saudi Aramco for $2.65B in cash.

As a result of the deal, Valvoline ( VVV ) said it will own the Valvoline brand for all retail services purposes globally, excluding China and certain countries in the Middle East and North Africa, while Aramco will own the Valvoline brand for all products uses globally.

"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,"

Aramco Downstream Senior VP Mohammed Y. Qahtani said.

Valvoline ( VVV ) said it plans to use most of the anticipated $2.25B in net after-tax cash proceeds to accelerate the return of capital to shareholders through stock buybacks.

The U.S. company also reported preliminary Q3 earnings and sales that topped analyst consensus, seeing Q3 adjusted EPS of $0.58 and sales of $957M, above $0.56 and $932.8M respective consensus estimates.

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