Driven Brands announces closing of sale of U.S. car wash business
Driven Brands today announced the completion of the sale of its U.S. car wash business to Express Wash Operations, LLC dba Whistle Express Car Wash.
“The completion of this transaction marks an important milestone for Driven Brands, enabling us to focus on our industry-leading Take 5 Oil Change business underpinned by our stable, cash-generating franchise businesses,” said Jonathan Fitzpatrick, President and Chief Executive Officer. “I want to thank everyone involved for their hard work in completing this transaction. We are confident this disposition will better position the company to execute on our strategic initiatives.”
Under the terms of the agreement, Whistle paid Driven Brands approximately $255 million in cash and delivered to Driven Brands a negotiable interest-bearing seller note in the principal amount of $130 million. Final proceeds are subject to customary post-closing adjustments and payment of transaction-related fees and expenses. Cash proceeds from the transaction will be used to pay down debt as the Company works to achieve 3x or less net leverage by the end of 2026.
In fiscal year 2025, the Company plans to report the results of the U.S. car wash business as discontinued operations.