Driven Brands Holdings Inc. (NASDAQ: DRVN) has announced the completion of the sale of its U.S. car wash business to Express Wash Operations, LLC dba Whistle Express Car Wash (Whistle). The transaction saw Whistle pay Driven Brands approximately $255 million in cash and deliver a negotiable interest-bearing seller note in the principal amount of $130 million.
The company plans to use the cash proceeds from the transaction to pay down debt as it works towards achieving 3x or less net leverage by the end of 2026. In fiscal year 2025, Driven Brands intends to report the results of the U.S. car wash business as discontinued operations.
At the end of fiscal year 2024, Driven Brands had 5,200 locations across 14 countries and serviced approximately 70 million vehicles. In 2024, the company's network generated approximately $2.3 billion in annual revenue from approximately $6.5 billion in system-wide sales. The completion of this sale marks an important milestone for the company, allowing it to focus on its industry-leading Take 5 Oil Change business underpinned by stable, cash-generating franchise businesses.
The sale is part of Driven Brands' strategic initiatives, and the company is confident that this disposition will better position it to execute on its strategic goals. The market has reacted to these announcements by moving the company's shares -0.2% to a price of $16.16. If you want to know more, read the company's complete 8-K report here.
