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Valvoline Continues Aggressive Growth Plans

22 January 1998

Valvoline Continues Aggressive Growth Plans, Announces Plans To Acquire Eagle One Industries

    LEXINGTON, Ky., Jan. 22 -- The Valvoline Company and Eagle
One Industries have signed a definitive agreement whereby Valvoline, a
division of Ashland Inc. , will acquire Eagle One and its brands of
premium automotive appearance products.
    Terms of the transaction were not disclosed and closure of the transaction
is subject to government approval as well as the approval of Ashland's board
of directors.
    When completed, the Eagle One(R) acquisition will represent a continuation
of Valvoline's strategy to leverage a small number of master brands into
profitable growth in premium aftermarket segments "above and below the hood."
The transaction will continue Valvoline's aggressive growth and further
leverage its global automotive aftermarket franchise and distribution network
with another leading consumer brand.
    "We are proud to add Eagle One to Valvoline's family of automotive
products," said James J. O'Brien, Valvoline president.  "In our view, Eagle
One is a very strong brand with excellent growth potential.  We look forward
to employing our proven value-added marketing strategies as a leading player
in the premium appearance product segment."
    For Eagle One, already experiencing double-digit sales volume growth, the
sale to Valvoline translates into even faster expansion.  "Eagle One's
unsurpassed reputation for quality products and leading-edge packaging
provides Valvoline the foundation from which it can use its enormous resources
and marketing strength to build the pre-eminent position in the appearance
care market," said Bernard A. Li, president and founder of Eagle One.
    In 1997, Valvoline launched its reformulated DuraBlend synthetic blend
motor oil line, which has attained the No. 1 position it its category.  This
spring, Valvoline will introduce a premium line of Valvoline-branded
automotive chemicals for  "below the hood" applications.  The Eagle One
acquisition fills Valvoline's need for a premium masterbrand for "above the
hood," or appearance, applications.
    Eagle One, based in Carlsbad, Calif., is a leading marketer in the wheel
cleaner, metal polish, leather care and premium wax and polish segments.
Eagle One markets a line of 65 products targeted at car, sport utility, truck
and motorcycle enthusiasts.  The company was founded in 1978.
    Valvoline, based in Lexington, is a diverse automotive aftermarket
products and services company with sales in more than 140 countries.  In
addition to marketing Valvoline-branded motor oils and
other lubricants worldwide, Valvoline markets Pyroil-branded automotive
refrigerants and chemicals;  Zerex(R) antifreeze; TECTYL Rust
Preventives; and private label lubricants through a wide distribution
system.
    Valvoline is also a leading player in the U.S. fast oil-change
business with its Valvoline Instant Oil Change unit, which operates
more than 500 company-owned and franchised stores.  The company's First
Recovery division annually collects more than 50 million gallons of
used motor oil and recycles it as marine and industrial fuels.
SOURCE  The Valvoline Company