Platform Acquisition for Roll-up Strategy
Industry: Retail - Auto Service
Company Profile: Great Lakes Quick Lube is an independent franchisee of Valvoline Instant Oil Change Inc.
Great Lakes has a total of 105 service centers in six states and is the largest franchisee in the Valvoline Instant Oil Change system.
NewPoint’s Role: Our client, a Canadian based entrepreneur, was pursuing an acquisition of a 46 store VIOC
franchisee for sale in the U.S. We were engaged as the investment banker to provide advice on all aspects of the transaction.
Our role included: finalizing negotiations on the Letter of Intent; determining the capital structure; negotiating the terms of a
vendor take-back note (VTB); sourcing and negotiating a sale lease-back of the underlying real estate relating to 29 of the locations;
negotiating the terms of the partnership agreement between the equity investors; and negotiating all other business issues relating to
the closing documentation.
Transaction Snapshot: The transaction was 100% financed through the proceeds raised from the sale lease-back,
VTB and a relatively small portion of equity from the partners. NewPoint, in addition to advising on the transaction,
invested in the transaction in return for a minority interest. NewPoint continues to advise the company with respect to certain
financial matters and follow-on acquisitions and has a seat on the Board of Directors.
