Charlotte, NC, December 3, 2025
Driven Brands Holdings Inc. has decided to sell its international car wash business, IMO Car Wash, to Franchise Equity Partners for €406 million. This strategic move aims to streamline operations and reduce net leverage ratio. The transaction is expected to close in Q1 2026, pending regulatory approvals. Proceeds from the sale will be utilized for debt reduction and corporate initiatives, reflecting Driven Brands’ commitment to enhance financial stability and operational focus, which may benefit the local economy.
Driven Brands Sells IMO Car Wash for €406 Million
Charlotte’s Own Driven Brands Restructures for Growth and Efficiency
Charlotte, N.C. – Driven Brands Holdings Inc. (NASDAQ: DRVN) has made a significant decision to sell its international car wash business, IMO, to Franchise Equity Partners for €406 million. This strategic divestiture marks a pivotal moment for Driven Brands as it endeavors to streamline its operations and enhance its financial stability by reducing its net leverage ratio.
The transaction is anticipated to close in the first quarter of 2026, subject to necessary regulatory approvals. Proceeds from the sale will primarily facilitate debt reduction and support general corporate initiatives. Additionally, Driven Brands plans to categorize the results from the Car Wash segment as discontinued operations starting in the fourth quarter of 2025.
Understanding the Transaction and Financial Outlook
Driven Brands has updated its fiscal year 2025 outlook in light of this divestiture. The company now expects revenue to be between $1.85 billion and $1.87 billion, with Adjusted EBITDA anticipated to range from $445 million to $455 million. The projected Adjusted Diluted EPS from continuing operations is expected to fall between $1.18 and $1.23, pending the final assessment of income tax ramifications tied to the divestiture.
IMO Car Wash: A Leader in the Industry
Founded 60 years ago, IMO Car Wash stands as the largest tunnel car wash enterprise globally, with 720 locations across the United Kingdom, Germany, and numerous other European nations, alongside Australia. Its high-volume model draws in millions of customers yearly, contributing significantly to its success within the competitive car wash market.
Driven Brands: A Powerhouse in Automotive Services
Headquartered right in the heart of Charlotte, N.C., Driven Brands is positioned as the foremost automotive services company in North America. The company’s diverse offerings span consumer and commercial services, including paint, collision repair, glass, vehicle maintenance, oil changes, and car washes, operating approximately 4,900 locations across both the United States and 13 additional countries. This extensive reach allows Driven Brands to service tens of millions of vehicles each year, underlining its substantial impact on the automotive services landscape.
Anticipated Impact on the Mecklenburg County Economy
As a major player in Charlotte’s economy, Driven Brands’ decision to sell its IMO branch might pave the way for enhanced financial flexibility and operational focus. The resulting capital from the sale could bolster local investment initiatives and support further growth in other areas. This move illustrates a broader trend where companies, regardless of size, seek to adapt to evolving market conditions through strategic restructuring.
Looking Ahead: The Future of Driven Brands
The announcement of this divestiture signals a critical juncture for Driven Brands as they recalibrate their financial and operational strategies. By concentrating resources on their core competencies and reducing debt, the company is poised for future growth. Local entrepreneurs can take inspiration from this initiative, highlighting the importance of agility and decisive action in today’s dynamic business environment.
Conclusion
Driven Brands’ sale of IMO Car Wash exemplifies a proactive approach to refinement and growth in the business landscape. As the company moves forward with reduced debt and a clearer operational focus, local stakeholders and entrepreneurs stand to benefit from such strategic maneuvers. By maintaining an eye on innovations and community-driven efforts, Charlotte can continue to foster an environment conducive to business development and economic success.
Frequently Asked Questions (FAQ)
What is the value of the transaction?
The transaction is valued at €406 million, based on IMO’s balance sheet as of June 30, 2025. This amount is not subject to post-closing adjustments for cash, debt, or working capital.
When is the transaction expected to close?
The transaction is expected to close in the first quarter of 2026, subject to receipt of specified regulatory approvals.
How will the proceeds from the sale be used?
Proceeds from the sale will primarily be used to pay down debt and for general corporate purposes.
What is IMO Car Wash?
IMO Car Wash is the largest tunnel car wash business globally, operating 720 locations across the United Kingdom, Germany, and nine other European countries, as well as Australia. The company serves millions of customers annually through its high-volume model.
What is Driven Brands’ fiscal year 2025 outlook?
Driven Brands now expects revenue to be between $1.85 billion and $1.87 billion, with Adjusted EBITDA ranging from $445 million to $455 million. Adjusted Diluted EPS from continuing operations is projected to be between $1.18 and $1.23, subject to final determination of income tax impacts related to the divestiture.
What is Driven Brands?
Driven Brands, headquartered in Charlotte, N.C., is the largest automotive services company in North America, providing a range of consumer and commercial automotive services, including paint, collision, glass, vehicle repair, oil change, maintenance, and car wash. The company operates approximately 4,900 locations across the United States and 13 other countries, servicing tens of millions of vehicles annually.
| Key Feature | Details |
|---|---|
| Transaction Value | €406 million |
| Expected Closing Date | First quarter of 2026 |
| Use of Proceeds | Debt reduction and general corporate purposes |
| IMO Car Wash Operations | 720 locations across the UK, Germany, and nine other European countries, as well as Australia |
| Driven Brands’ Fiscal Year 2025 Outlook | Revenue: $1.85–$1.87 billion; Adjusted EBITDA: $445–$455 million; Adjusted Diluted EPS: $1.18–$1.23 |
| Driven Brands Overview | Largest automotive services company in North America, operating approximately 4,900 locations across the U.S. and 13 other countries |
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