Driven Brands International Carwash Unit Headed to Franchise Equity Partners in €406M Deal

Driven Brands Holdings Inc. (DRVN) has struck a definitive agreement to transfer its international car wash operations to Franchise Equity Partners in a transaction valued at 406 million euros, signaling a major strategic pivot for the auto services platform. The transfer is set to finalize during the opening months of 2026, utilizing IMO's financial standing as documented on June 30, 2025.

**Deleveraging as Core Priority**

The divestiture represents a crucial move in Driven Brands' broader financial restructuring. By offloading the international car wash business, the company is targeting a 0.3x reduction in pro forma leverage—a meaningful step toward its stated objective of reaching 3x net leverage by year-end 2026. CFO Mike Diamond emphasized that this move allows the company to sharpen its operational focus on its established North American operations while simultaneously strengthening its balance sheet.

**Financial Implications and Revised Outlook**

The proceeds generated from this sale will primarily address outstanding debt obligations and support general operational needs. Given this transaction, Driven Brands has recalibrated its full-year 2025 guidance. The car wash segment will be reclassified as discontinued operations starting in Q4 2025.

Updated expectations now project revenues between $1.85 billion and $1.87 billion, alongside Adjusted EBITDA in the $445 million to $455 million range. Adjusted Diluted EPS from continuing operations is anticipated at $1.18 to $1.23. These figures represent material adjustments from prior guidance, which had forecasted revenues of $2.1 billion to $2.12 billion and Adjusted EBITDA of $525 million to $535 million.

**Growth Trajectory Maintained**

Despite this divestiture, Driven Brands reaffirmed its commitment to organic expansion, maintaining expectations for net store additions between 175 and 200 locations throughout 2025. The company continues to position itself as a focused player in North American automotive services.

**Market Reaction**

DRVN shares concluded trading Monday at $14.13, declining 3.29% on the Nasdaq as investors absorbed the revised financial guidance accompanying the international car wash sale announcement.