Driven Brands Sells Canadian Distribution Business To PGW Auto Glass: Debt Reduction On The Horizon

Driven Brands Holdings Inc. DRVN announced on Tuesday that it has sold its Canadian distribution business, mainly operated under the PH Vitres d’Auto brand, to PGW Auto Glass, a North American glass distributor.

The details of the transaction, effective August 31, 2024, remain undisclosed. The Canadian distribution business, part of the company’s Platform Services segment, will see net proceeds from the sale primarily used to reduce debt.

This transaction is anticipated to have a minimal effect on the company’s fiscal year 2024 forecast. Additional details will be shared during the third-quarter earnings call.

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“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,” said Jonathan Fitzpatrick, President and Chief Executive Officer.

Earlier in August, the firm announced the appointment of 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.

According to Benzinga Pro, DRVN stock has gained over 6% in the past month.

Price Action: DRVN shares traded lower by 1.78% at $14.09 at the last check Tuesday.

Photo via Shutterstock

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