Shell, through its subsidiary Pennzoil-Quaker State, acquired the parent company of Allied Reliability Inc., an industrial services and maintenance products provider which also provides lubrication systems and components, the company announced last week. The move expands Shell’s North American lubricants business into a more service-driven sector.
Allied Reliability is under the umbrella of TFH Reliability Group, a Houston-based private equity firm. “Allied Reliability will be an indirect, wholly owned subsidiary of Shell and fully consolidated within our lubricants marketing business from today,” Shell said.
Allied Reliability provides custom lubrications systems, oil mist lubrication systems, lubrication system components and ultra-high-pressure systems. Key industries served by Allied include chemical processing, food and beverage, mining and materials, and oil and gas. The move expands Shell’s North American lubricants business into a more service-driven sector.
“In addition to expanding the suite of lubricants products we can offer customers, acquiring a proven, credible player in the industrial services space allows us to offer a ‘products-plus-services’ model that can help customers drive improvements in performance and safety for their equipment,” Machteld de Haan, executive vice president of global lubricants at Shell, said in a Dec. 22 press release. “This fits in perfectly with our global lubricants strategy to grow our premium product offering and presence in the industrial sector ….”
The deal was structured to simultaneously sign and close, the company said.
Shell is the world’s leading supplier of finished lubricants, according to Parsippany, New Jersey-based consultancy Kline & Co. In the United States, Shell supplies just under a quarter of passenger car motor oils.