Driven Brands Holdings Inc. announced the completion of the sale of IMO, its international car wash business, to Franchise Equity Partners.
“The completion of this transaction is a strategic milestone for Driven Brands, sharpening our focus on what we do best — scaling our industry-leading Take 5 business and driving consistent cash generation from our franchise brands,” said Danny Rivera, president and CEO. “I want to thank everyone involved for their hard work in closing the transaction. This divestiture simplifies our portfolio, strengthens our balance sheet and further positions Driven Brands to generate value for shareholders.”
Under the terms of the agreement, Franchise Equity Partners paid Driven Brands total aggregate consideration of approximately 411 million euros. Cash proceeds from the transaction will primarily be used to pay down debt.
The company plans to report the results of the Car Wash segment as discontinued operations beginning in the fourth quarter of 2025. Auto Glass Now, currently reported in the Corporate & Other segment, will be reported as a stand-alone segment beginning in the fourth quarter of 2025.
In addition, the company expects to furnish a Form 8-K with the Securities and Exchange Commission in mid-February to provide unaudited historical recast quarterly financial operating results for the first three quarters of fiscal 2025. The filing will reflect the company’s updated segment reporting structure resulting from the completed disposition of its international car wash business.