Driven Brands Holdings Inc. (DRVN) announced on Tuesday that it has sold its Canadian distribution business, primarily operated under the PH Vitres d’Auto brand, to PGW Auto Glass, a North American glass distributor. The sale, effective August 31, 2024, represents a strategic move for Driven Brands as it seeks to optimize its portfolio and strengthen its financial position.
The details of the transaction have not been disclosed, but the company plans to use the net proceeds primarily to reduce its debt. The sale will not significantly impact Driven Brands’ fiscal year 2024 forecast, with additional details expected to be shared during the third-quarter earnings call.
“I want to thank Richard Jutras, President of PH, and the entire team at PH for being great partners over the last five years. We are confident that the business will continue to perform well under its new ownership,” stated Jonathan Fitzpatrick, President and Chief Executive Officer of Driven Brands.
Driven Brands has been actively managing its operations in recent months. Earlier in August, the company appointed Michael Diamond as Executive Vice President and Chief Financial Officer. Joel Arnao, who has served as Interim Chief Financial Officer since May 2024, will continue in his role as Senior Vice President, FP&A, Investor Relations, and Treasury.
Driven Brands’ stock has shown positive performance in the past month, gaining over 6% according to Benzinga Pro. However, DRVN shares traded lower by 1.78% at $14.09 at the last check Tuesday.
This sale highlights Driven Brands’ commitment to streamlining its operations and focusing on strategic growth initiatives. The company’s focus on reducing debt and improving its financial position indicates a proactive approach to managing its business and maximizing shareholder value.