FTC Requires Divestiture of Oil Change Shops in Valvoline-Greenbriar Deal

The Federal Trade Commission will require automotive services company Valvoline Inc. and private equity firm Greenbriar Equity Fund V., L.P. (Greenbriar) to divest 45 quick-lube oil change shops to resolve antitrust concerns surrounding their $625 million deal. Main Street Auto, LLC will acquire the divested outlets from Greenbriar under the terms of the FTC’s proposed divestiture order.

Valvoline seeks to acquire approximately 200 quick-lube oil change outlets from Greenbriar. Greenbriar, via a subsidiary, currently operates these quick-lube oil change outlets under the name Oil Changers. Quick-lube oil change outlets reliably provide oil changes to customers in under 30 minutes without an appointment.

The FTC’s proposed divestiture order will protect Americans from higher prices for quick-lube oil changes and lower quality quick-lube oil change services in California, Kentucky, Idaho, Illinois, Indiana, Michigan, Washington, and Wisconsin.

“The FTC took action today to ensure that quick-lube oil changes remain affordable and available for American consumers across the country,” said Daniel Guarnera, Director of the FTC’s Bureau of Competition. “The FTC’s divestiture order will preserve competition that is critical to providing convenient oil changes at affordable prices to millions of consumers.”

The proposed divestiture order settles FTC allegations that Valvoline’s acquisition of approximately 200 Oil Changers outlets from Greenbriar would eliminate competition across 25 local markets where Valvoline and Oil Changers directly compete in offering quick-lube oil changes. The FTC alleges that without the divestiture, the proposed deal would result in higher prices and lower service quality for consumers seeking a quick-lube oil change in these markets.

The Commission vote to issue the complaint and accept the consent agreement for public comment was 3-0.

The public will have 30 days to submit comments on the proposed consent agreement package. Instructions for filing comments appear on the docket. Once processed, they will be posted on Regulations.gov.

NOTE: The Commission issues an administrative complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. When the Commission issues a consent order on a final basis, it carries the force of law with respect to future actions.