Driven Brands to Sell IMO to Franchise Equity for $471 Million; Fiscal 2025 Outlook Lowered
MT Newswires Live
Dec 02
Driven Brands (DRVN) said Tuesday that it has agreed to sell its carwash business IMO, to Franchise Equity Partners for 406 million euros ($471.2 million).
Proceeds will primarily be used to pay down debt and for general corporate purposes, the company said.
The transaction is expected to close in Q1.
Because of the divestment, the company also lowered its outlook for the fiscal year ending Dec. 27 to adjusted diluted EPS of between $1.18 and $1.23 on revenue of $1.85 billion to $1.87 billion. That compares with the company's previous guidance of $1.23 to $1.28 per adjusted diluted EPS on revenue of $2.10 billion to $2.12 billion.
Analysts polled by FactSet expect non-GAAP EPS of $1.26 on revenue of $2.12 billion.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.