Driven Brands Holdings Inc. announced the successful completion of the sale of its U.S. car wash business to Express Wash Operations, LLC dba Whistle Express Car Wash. This transaction marks a significant milestone in the company's strategy to focus on its core automotive services.
Under the terms of the agreement, Driven Brands received approximately $255 million in cash and a $130 million negotiable interest-bearing seller note, totaling $385 million in proceeds. The company stated that the cash proceeds will be primarily utilized to pay down debt.
This divestiture is a key step towards Driven Brands' goal of achieving less than 3x net leverage by the end of 2026. The results of the U.S. car wash business will be reported as discontinued operations in fiscal year 2025, streamlining the company's financial reporting.
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