CHARLOTTE: Driven Brands Holdings Inc. (NASDAQ: DRVN), the largest automotive services company in North America, announced Tuesday that it has entered into a definitive agreement to sell its U.S. car wash business to Express Wash Operations, LLC, operating as Whistle Express Car Wash, for $385 million.
“This transaction will enable Driven Brands to reduce debt and enhance our focus on our growing Take 5 Oil Change brand and our stable, cash-generating franchise brands,” said Jonathan Fitzpatrick, President and Chief Executive Officer of Driven Brands.
“This decision follows a deliberate and thoughtful strategic review of value-maximizing options for the U.S. car wash business, and we are confident it will better position the company to execute on our strategic initiatives and deliver long-term value to our shareholders.”
The cash proceeds from the transaction will be used primarily to pay down debt as Driven Brands aims to achieve a net leverage of 3x or less by the end of 2026.
Under the terms of the agreement, Whistle Express Car Wash will pay Driven Brands $255 million in cash and deliver an interest-bearing seller note of $130 million, subject to customary adjustments. The transaction is expected to close in the second quarter of 2025, subject to customary closing conditions.
Fitzpatrick expressed gratitude to the U.S. car wash team members for their dedication and to customers for their loyalty, ensuring a smooth transition for all stakeholders.
In related news, Driven Brands announced that its Board of Directors has named Chief Operating Officer Daniel Rivera as President and Chief Executive Officer, effective May 9, 2025. On February 24, 2025, Fitzpatrick notified the Board of his intent to step down as President and CEO, effective May 9, 2025. Fitzpatrick will continue to serve on the Board and has been appointed Non-Executive Chair of the Board, effective the same date. He will also serve as a senior advisor for the remainder of 2025 to assist Rivera with the transition.
Rivera, who joined Driven Brands as Chief Information Officer in October 2012, has held various leadership roles within the company, including Meineke Brand President and President of Take 5 Oil Change. He previously held leadership positions at AutoNation, Burger King Corporation, and General Electric.
Rivera’s appointment follows a comprehensive multi-year succession planning process led by the Board’s Nominating & Corporate Governance Committee.