Valvoline Inc. (NYSE:VVV) was founded by Dr. John Ellis in New York in 1866 and registered the Valvoline® trademark in 1873. It has been part of the business of Ashland Inc. (ASH) , a large diversified industrial product manufacturer. , The new company was incorporated in Kentucky on May 13, 2016, plans to separate from Ashland, headquartered in Lexington, Kentucky, USA, 5150 full-time employees (12/31/2016), is the most recognized in the global automotive lubricant industry And a respected high-quality consumer brand, known for its high-quality products and excellent service.
Sheng Brand is one of the largest (engine) oil producers in the United States. It was founded in 1866 and has a history of 150 years. Its products are exported to more than 140 countries around the world. Its products include: engine oil, diesel oil, transmission maintenance oil, Antifreeze, gear oil, grease, brake oil, transmission fluid, etc.
Valvoline Inc. is divided into 3 departments to operate:
- Core North America : Provide products for DIY (self-maintenance) consumers in the United States and Canada, and also sell to car assemblers, car dealers, general car repair shops, and third parties to provide quick oil changes Established a strategic partnership with Cummins Inc. (a leading manufacturer of heavy-duty engines) and jointly named the heavy-duty vehicle business. In fiscal year 2015, revenue from this division accounted for 54% of the company’s total revenue and 53% of adjusted EBITDA.
- Quick Lubes : In terms of the number of stores, Valvoline Inc. operates the second largest retail quick oil change service chain in the United States-Valvoline Instant Oil Change (“VIOC”), providing fast and reliable services. So far, the company has a total of 330 self-owned quick lubricant (oil change) stores and 720 franchise stores. In fiscal 2015, this division contributed 20% of the company’s revenue and 27% of adjusted EBITDA.
- International (International) : This department sells including passenger car products and heavy products used in various heavy equipment. Passenger car products are mainly sold to automobile assembly companies and car dealers through dealers, and heavy-duty products are mainly sold through dealers and direct sales. In fiscal 2015, this division contributed 26% of the company’s revenue and 20% of adjusted EBITDA.
As a wholly-owned subsidiary of Valvoline, it represents the U.S. headquarters in China for a full range of market operations and brand operations. Since 2000, Shengpai has established a solid sales network in many cities across the country. Sheng Brand is known for providing high-quality and high-end lubricant products and automotive chemicals to the market. At present, Shengpai Company is intensifying the development of the Chinese market, providing high-quality Shengpai products to the majority of Chinese users, and is determined to provide every customer with a full range of services.
At the same time, the prestigious Sheng brand products are recommended or positioned as special lubrication products by many automobile manufacturers. GM , Ford , Chrysler , Volkswagen , BMW , Porsche , the US military and the US Department of Transportation all recommend Sheng brand products as designated products.
Valvoline is also working with the world’s largest engine manufacturer Cummins Inc. entered into a global strategic partnership, each Cummins engines are using Valvoline lubricant products.
In order to develop the Chinese market, Shengpai and Cummins have established a joint venture Kangsheng Lubricant (Shanghai) Co., Ltd. in Shanghai. China is the world’s second largest consumer of lubricants, with huge market development potential, but competition is also fierce. Shengpai will come to China and will make greater contributions and promises to China’s economic development in the future by virtue of its strong strength, excellent quality and comprehensive professional services.
Valvoline (VVV) investment:
Valvoline Inc. (NYSE:VVV) submitted its IPO prospectus on 5/31/2016 and listed on Nasdaq on 9/23/2016 with an issue price of US$22.00, 30 million shares issued, and a fund-raising of US$660 million. , Stock code: VVV.