Driven Brands Holdings Inc. (NASDAQ:DRVN) on Tuesday disclosed a definitive agreement to sell its international car wash business, IMO, to Franchise Equity Partners for 406 million euros (around $471 million).
The deal, based on IMO’s June 30, 2025, balance sheet, includes standard locked-box protections and a daily price adjustment from July 1, 2025, until closing.
The transaction is expected to finalize in the first quarter of 2026, pending regulatory approvals.
The sale proceeds are expected to mainly be used to reduce debt and support general corporate purposes.
Starting in the fourth quarter of 2025, Car Wash results will be reported as discontinued operations, while Auto Glass Now will be presented as a separate segment.
The sale supports the company’s balance sheet de-leveraging and sharpens focus on core North American operations.
The transaction is expected to lower Driven Brands’ pro forma leverage by ~0.3x, reinforcing the target of reaching 3x net leverage by year-end 2026.
Executive Commentary
“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.
“IMO is a good business, but it is not core to our long-term strategy. By exiting it, we simplify our portfolio, strengthen our balance sheet, and position Driven Brands to create greater value for shareholders.”
Updated 2025 Outlook
The company now sees continuing operations revenue of $1.85 billion–$1.87 billion (versus $2.10 to $2.12 billion earlier) and adjusted EPS of $1.18 to $1.23 (versus $1.23 to $1.28 prior).
Following the reclassification of the international car wash business as discontinued operations, same-store sales are now expected slightly below the low end of the 1% to 3% range.
The company continues to see net store growth of 175 to 200 for 2025.
DRVN Price Action: Driven Brands Hldgs shares were up 1.70% at $14.37 during premarket trading on Monday, according to Benzinga Pro data.
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