Transaction overview
ICV Partners, LLC acquired Interstate Auto Care, LLC, a leading Valvoline Instant Oil Change franchisee operating 26 locations across the Northeast and Southern United States. The acquisition was announced on June 30, 2024, with the same date marking its closing. ICV Partners secured a significant equity stake in Interstate Auto Care but did not disclose specific details regarding the deal value or ownership percentage beyond indicating it is over 50%.
Deal structure and financing
The exact financial terms of the transaction, including equity/debt split and lock-up provisions for seller retained stakes, remain undisclosed. Mufson Howe Hunter & Co., a specialized investment banking firm, acted as exclusive financial advisor to Interstate Auto Care in this deal. While specific leverage metrics are unavailable, ICV Partners is known for its focus on middle-market companies with the potential for growth through operational improvements and strategic initiatives.
Strategic context
ICV Partners' acquisition of Interstate Auto Care underscores the firm's continued interest in automotive service franchises that offer essential maintenance services such as oil changes and tire rotations. With 26 locations, Interstate Auto Care is a substantial player within its regional markets, benefiting from established customer relationships and brand recognition under the Valvoline Instant Oil Change banner. For ICV Partners, this represents an opportunity to enhance operational efficiencies and expand the franchise network further.
For Interstate Auto Care's founder and CEO, Howard Weiner, selling a significant equity interest to ICV Partners allows the company to benefit from strategic investment without losing control of day-to-day operations. The deal also provides capital for expansion and potential new market entries while maintaining the leadership’s vision for growth within the Valvoline Instant Oil Change system.
Regulatory path
As this is an acquisition by a private equity firm of a mid-sized franchise operation with limited cross-border implications, regulatory scrutiny was likely minimal. The transaction did not disclose any specific remedies or antitrust concerns addressed with federal regulators such as the Federal Trade Commission (FTC) or the Department of Justice (DOJ). Given Interstate Auto Care's regional focus and lack of dominant market share in its service areas, no significant hurdles were expected from U.S. regulatory bodies.
No foreign jurisdictions are known to have been involved in reviewing this transaction due to the domestic nature of both ICV Partners and Interstate Auto Care’s operations and their limited international presence.