Valvoline Announces New Development Agreements with Franchisees and the Acquisition of Franchise Locations in Michigan and Ohio

Signs eight new development agreements with seven franchisees for a
total of more than 160 new stores over the next six years, including
expansion in the Northeast, Mid-Atlantic and California; and the
purchase of 56 stores from Henley Bluewater LLC

LEXINGTON, Ky.–(BUSINESS WIRE)–Valvoline Inc. (NYSE: VVV), announced today that it has signed eight new
development agreements with seven of its largest Valvoline Instant Oil
ChangeSM (VIOC) franchisees for the addition of more than 160
stores by 2023. Valvoline continues to work on additional development
agreements that when complete would provide for a combined total of more
than 200 new VIOC franchise stores in the next six years.

Two of these agreements are with the company’s largest franchisee,
Henley Enterprises, Inc., which opened the first VIOC franchise location
in 1989 and currently has more than 200 service centers, primarily in
the Northeast and southern California. Pursuant to the agreements, two
of Henley’s subsidiaries will add approximately 100 stores in California
and the Northeast and Mid-Atlantic regions. Valvoline also announced it
has signed a definitive agreement with Henley Bluewater LLC to acquire
its 56 stores in Michigan and northern Ohio. The acquisition is expected
to be completed in the first quarter of fiscal 2018. Financial terms
were not disclosed.

“A core element of Valvoline’s strategy is to accelerate the growth of
our industry-leading quick lube model,” said Sam Mitchell, Valvoline’s
chief executive officer. “Through these development agreements we are
leveraging our strong relationships with our franchisees as they commit
capital and resources to drive their store growth. At the same time, we
are committing our own capital to grow company-owned stores. Today’s
announcements reflect the progress we’ve made in mapping out our
deliberate system-wide growth plans and position us well as we move into
fiscal 2018.”

The service model at VIOC has been built to provide a quick, easy and
trusted experience for every customer, every day. Customers receive a
stay-in-your-car solution for preventive maintenance services, including
full-service oil changes and each vehicle manufacturer’s mileage-based
services. The company’s model is built on an unwavering commitment to
developing and protecting superior talent, both inside and outside its
stores, and consistent execution of its proprietary tools, including
point-of-sales technology, SuperProTM Management System and
digital marketing platforms.

“The transactions announced today represent an exciting opportunity
across the entire VIOC system. The development agreements enable our
franchisees to focus on faster growth in targeted markets, and
Valvoline’s acquisition of the 56 stores in Michigan and Northern Ohio
allows us to increase the density of our company-owned network of stores
in the Midwest,” said Tony Puckett, Valvoline’s president, Quick Lubes.
“From this much stronger base in the region, we’ll be well positioned to
leverage our resources to enhance operational efficiency and capture
further growth opportunities for our company operations.”

“Divesting our Midwest stores allows us to free up capital to focus on
aggressive growth in our target markets where we already have strength,
namely in California, Mid-Atlantic and the Northeast,” said Don Smith,
CEO of Henley Enterprises, Inc. “After nearly 30 years as a franchisee,
VIOC’s retail model has never been stronger and the company’s
relationship with franchisees have never been healthier. I look forward
to adding an additional 100 stores to the VIOC system over the next six

For a list of all Valvoline Instant Oil Change service center locations
and hours of operation, visit

About ValvolineTM

Valvoline Inc. (NYSE:VVV) is a leading worldwide producer and
distributor of premium branded automotive, commercial and industrial
lubricants, and automotive chemicals. Valvoline ranks as the #2
quick-lube chain by number of stores and #3 passenger car motor oil
brand in the DIY market by volume in the United States. The brand
operates and franchises more than 1,070 Valvoline Instant Oil ChangeSM
centers in the United States. It also markets Valvoline™ lubricants and
automotive chemicals; MaxLife™ lubricants created for higher-mileage
engines; SynPower™ synthetic motor oil; and Zerex™ antifreeze. Visit
to learn more.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. All statements,
other than statements of historical facts, contained in the news
release, including statements regarding our industry, position, goals,
strategy, operations, financial position, revenues, estimated costs,
prospects, margins, profitability, capital expenditures, liquidity,
capital resources, dividends, plans and objectives of management are
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these words or other comparable terminology. In addition, Valvoline™
may, from time to time, make forward-looking statements in its annual
report, quarterly reports and other filings with the Securities and
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These forward-looking statements are based on Valvoline’s current
expectations and assumptions regarding, as of the date such statements
are made, Valvoline’s future operating performance and financial
condition, including Valvoline’s future financial and operating
performance, strategic and competitive advantages, leadership and future
opportunities, as well as the economy and other future events or
circumstances. Valvoline’s expectations and assumptions include, without
limitation, internal forecasts and analyses of current and future market
conditions and trends, management plans and strategies, operating
efficiencies and economic conditions (such as prices, supply and demand,
cost of raw materials, and the ability to recover raw material cost
increases through price increases), and risks and uncertainties
associated with the following: demand for Valvoline’s products and
services; sales growth in emerging markets; the prices and margins of
Valvoline’s products and services; the strength of Valvoline’s
reputation and brand; Valvoline’s ability to develop and successfully
market new products; Valvoline’s ability to retain its largest
customers; achievement of the expected benefits of Valvoline’s
separation from Ashland; Valvoline’s substantial indebtedness (including
the possibility that such indebtedness and related restrictive covenants
may adversely affect Valvoline’s future cash flows, results of
operations, financial condition and Valvoline’s ability to repay debt)
and other liabilities; operating as a stand-alone public company;
failure, caused by Valvoline, of Ashland’s distribution of Valvoline
common stock to Ashland shareholders to qualify for tax-free treatment,
which may result in significant tax liabilities to Ashland for which
Valvoline may be required to indemnify Ashland; and the impact of
acquisitions and/or divestitures Valvoline has made or may make
(including the possibility that Valvoline may not realize the
anticipated benefits from such transactions or difficulties with
integration). These forward-looking statements are also subject to the
risks and uncertainties affecting Valvoline that are described in its
most recent Form 10-K (including in Item 1A Risk Factors and “Use of
estimates, risks and uncertainties” in Note 2 of Notes to Consolidated
Financial Statements) filed with the SEC, which is available on
Valvoline’s website at
In light of these risks, uncertainties and assumptions, the
forward-looking events and circumstances discussed in this news release
may not occur, and actual results could differ materially and adversely
from those anticipated or implied in the forward-looking statements.

You should not rely upon forward-looking statements as predictions of
future events. Although Valvoline believes that the expectations
reflected in these forward-looking statements are reasonable, Valvoline
cannot guarantee that the expectations reflected herein will be
achieved. In light of the significant uncertainties in these
forward-looking statements, you should not regard these statements as a
representation or warranty by Valvoline or any other person that
Valvoline will achieve its objectives and plans in any specified time
frame, or at all. These forward-looking statements speak only as of the
date of this news release. Except as required by law, Valvoline assumes
no obligation to update or revise these forward-looking statements for
any reason, even if new information becomes available in the future.

All forward-looking statements attributable to Valvoline are expressly
qualified in their entirety by these cautionary statements as well as
others made in this news release and hereafter in Valvoline’s other SEC
filings and public communications. You should evaluate all
forward-looking statements made by Valvoline in the context of these
risks and uncertainties.

TM Trademark, Valvoline or its subsidiaries, registered in
various countries
SM Service mark, Valvoline or its
subsidiaries, registered in various countries


Valvoline Inc.
Investor Relations
Sean T. Cornett,

Valerie Schirmer, +1-859-357-3235