...October 4, 2023 We believe that Valvoline is well-positioned to take market share in the auto services retail industry following the sale of its consumer products business earlier this year. Valvoline has a good market position in preventative automotive services, particularly in the oil change category as the second-largest quick lube chain in the U.S. We believe management's efforts to expand higher-margin non-oil change revenue (NOCR) services will supplement its core oil-change business as it looks to adapt to an evolving car parc. Currently, NOCR accounts for approximately 25% of Valvoline's total sales. The Valvoline brand name is widely recognized by consumers, which we believe will support its store expansion and franchising plans. We project revenue growing more than 10% and S&P Global Ratings-adjusted EBITDA margin maintained at about 30% over the next 12 months. We see Valvoline benefiting from the expansion of its store network and a focus on accelerating franchise growth. We...
