Driven Brands Announces the Sale of its Canadian Distribution Business
03 September 2024 - 1:15PM
Business Wire
Driven Brands Holdings Inc. (NASDAQ: DRVN) ("Driven Brands" or
the "Company"), the largest automotive services company in North
America, today announced the sale of its Canadian distribution
business, primarily operated under the PH Vitres d’Auto brand
(“PH”), to PGW Auto Glass, a leading North American glass
distributor, effective August 31, 2024. Terms of the transaction
are not being disclosed.
The Canadian distribution business was reported in the Company’s
Platform Services segment. Net proceeds from the transaction
generally will be used to pay down debt. The sale is expected to
have minimal impact on the Company’s fiscal year 2024 outlook. The
Company will provide further details on its third quarter earnings
call.
“I want to thank Richard Jutras, President of PH, and the entire
team at PH for being great partners over the last five years. We
are confident that the business will continue to perform well under
its new ownership,” said Jonathan Fitzpatrick, President and Chief
Executive Officer.
Mike Diamond, EVP and Chief Financial Officer added, “Driven
Brands is committed to our active portfolio management strategy.
Although the sale of PH will have limited impact on the Company’s
financials, this transaction will reduce debt and be margin rate
accretive. We will provide further details and update our full-year
outlook based on the disposition during our Q3 earnings call.”
About Driven Brands
Driven Brands™, headquartered in Charlotte, NC, is the largest
automotive services company in North America, providing a range of
consumer and commercial automotive needs, including paint,
collision, glass, vehicle repair, oil change, maintenance and car
wash. Driven Brands is the parent company of some of North
America's leading automotive service businesses including Take 5
Oil Change®, Take 5 Car Wash®, Meineke Car Care Centers®, Maaco®,
1-800-Radiator & A/C®, Auto Glass Now®, and CARSTAR®. Driven
Brands has more than 5,000 locations across 13 countries, and
services over 70 million vehicles annually. Driven Brands' network
generates approximately $2.3 billion in annual revenue from more
than $6.4 billion in system-wide sales.
Disclosure Regarding Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements are generally identified by
the use of forward-looking terminology, including the terms
“anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,”
“intend,” “likely,” “may,” “plan,” “possible,” “potential,”
“predict,” “project,” “should,” “target,” “will,” “would” and, in
each case, their negative or other various or comparable
terminology. All statements other than statements of historical
facts contained in this Press Release, including statements
regarding our strategy, future operations, future financial
position, future revenue, projected costs, prospects, trends,
plans, objectives of management, impact of accounting standards and
outlook, impairments, and expected market growth are
forward-looking statements. In particular, forward-looking
statements include, among other things, statements relating to: (i)
our strategy, outlook and growth prospects; (ii) our operational
and financial targets and dividend policy; (iii) general economic
trends and trends in the industry and markets; (iv) the risks and
costs associated with the integration of, and our ability to
integrate, our stores and business units successfully; (v) the
proper application of generally accepted accounting principles,
which are highly complex and involve many subjective assumptions,
estimates, and judgments; and (vi) the competitive environment in
which we operate. Forward-looking statements are not based on
historical facts, but instead represent our current expectations
and assumptions regarding our business, the economy and other
future conditions, and involve known and unknown risks,
uncertainties and other important factors that may cause our actual
results, performance, or achievements to be materially different
from any future results, performance, or achievements expressed or
implied by the forward-looking statements. It is not possible to
predict or identify all such risks. These risks include, but are
not limited to, the risk factors that are described under the
section titled “Risk Factors” in our Annual Report on Form 10-K for
the fiscal year ended December 30, 2023, as well as in our other
filings with the Securities and Exchange Commission, which are
available on its website at www.sec.gov. Given these uncertainties,
you should not place undue reliance on these forward-looking
statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20240903190661/en/
Shareholder/Analyst inquiries: Dawn Francfort ICR, Inc.
investors@drivenbrands.com (203) 682-8200 Media inquiries: Taylor
Blanchard taylor.blanchard@drivenbrands.com (704) 644-8129
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