Valvoline Gears Up for IPO in Most Recent Filing

By Chris Lange Updated Jan 13, 5:49AM EST · Published Jul 12, 11:15AM EDT

Follow 24/7 Wall St. on Google

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Valvoline Gears Up for IPO in Most Recent Filing — © Ashland Inc.

Valvoline has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). No pricing details were listed in the filing, but the offering is valued up to $100 million in revenue, although this number is usually just a placeholder. The company intends to list its shares on the New York Stock Exchange under the symbol VVV.

The underwriters for the offering are Merrill Lynch, Citigroup and Morgan Stanley.

Valvoline is one of the most recognized and respected premium consumer brands in the global automotive lubricant industry, known for its high-quality products and superior levels of service. Established in 1866, the company’s heritage spans 150 years, during which it has developed powerful name recognition across multiple product and service channels. Valvoline has significant positions in the United States in all the key lubricant sales channels, and it also has a strong international presence with products sold in roughly 140 countries.

[nativounit]

In the United States and Canada, these products are sold to consumers through over 30,000 retail outlets, to installer customers with over 12,000 locations, and to approximately 1,050 Valvoline branded franchised and company-owned stores. Valvoline serves its customer base through an extensive sales force and technical support organization, allowing it to leverage its technology portfolio and customer relationships globally, while meeting customer demands locally.

In the filing, Valvoline described its finances as follows:

In fiscal 2015, we generated approximately $2.0 billion in sales, $422 million in Adjusted EBITDA and $196 million in net income. During the same period, our Adjusted EBITDA margin, which we define as Adjusted EBITDA as a percentage of sales, was 21.5%. In addition, we generated free cash flow of $285 million and cash flows provided by operating activities of $330 million during fiscal 2015.

The company intends to use the net proceeds from this offering to repay its indebtedness and for general corporate purposes.

[wallst_email_signup]

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.