Driven Brands Holdings Inc. (NASDAQ:DRVN) announced Tuesday it has entered into a definitive agreement to sell its international car wash business, IMO, to Franchise Equity Partners for €406 million.
NEW YORK, NEW YORK, USA / Investing.com / December 5, 2025 — Driven Brands Holdings Inc. (NASDAQ:DRVN) announced Tuesday it has entered into a definitive agreement to sell its international car wash business, IMO, to Franchise Equity Partners for €406 million. The transaction represents a significant move for the company, which currently has a market capitalization of $2.32 billion and trades at $14.13 per share.
The transaction, expected to close in the first quarter of 2026 subject to regulatory approvals, will reduce the company’s pro forma leverage by approximately 0.3x, supporting its goal to achieve a 3x net leverage ratio by the end of 2026.
"This transaction sharpens our focus on what we do best—scaling Take 5 and driving consistent cash generation through our Franchise Brands," said Danny Rivera, President and Chief Executive Officer of Driven Brands, in a press release statement.
The company plans to use proceeds primarily to pay down debt and for general corporate purposes. Following the divestiture, Driven Brands will report the Car Wash segment as discontinued operations beginning in the fourth quarter of 2025.
In conjunction with the announcement, Driven Brands updated its fiscal year 2025 outlook for continuing operations, projecting revenue of approximately $1.85-1.87 billion and adjusted EBITDA of approximately $445-455 million. The company expects adjusted diluted EPS from continuing operations in the range of $1.18 to $1.23.
Same-store sales growth is now expected to be slightly below the low end of the company’s original range of 1% to 3%, while net store growth projections remain at approximately 175 to 200 locations.
Driven Brands, headquartered in Charlotte, North Carolina, operates approximately 4,900 locations across the United States and 13 other countries. The company’s portfolio includes Take 5 Oil Change, Meineke Car Care Centers, Maaco, 1-800-Radiator & A/C, Auto Glass Now, and CARSTAR.
Rothschild & Co. is serving as financial advisor to Driven Brands for the transaction.
In other recent news, Driven Brands has made significant strides with its expansion and financial strategies. The company completed a $500 million securitization offering, issuing Series 2025-1 Fixed Rate Senior Secured Notes with a 5.296% coupon, set to mature in October 2055 and anticipated for repayment by October 2030. Benchmark has reiterated its Buy rating on Driven Brands, emphasizing the company’s Take 5 expansion strategy, which includes a long-term target of 2,500 locations, contributing to an 18% increase in system sales and a 7% growth in same-store comps over the past year. Stifel also maintained its Buy rating and $23 price target, basing its valuation on a discounted cash flow analysis.
Meanwhile, Piper Sandler adjusted its price target to $19 from $22, citing expectations of flat comparable sales in Q3 due to challenging year-over-year comparisons in the International Car Wash segment. Canaccord Genuity reiterated its Buy rating with a $24 price target after surveying oil change and collision repair locations to assess business trends and consumer behavior. These recent developments highlight Driven Brands’ ongoing efforts to expand its footprint and manage its financial strategies effectively.
