Shell has completed the sale of its Jiffy Lube business in the United States to an affiliate of Monomoy Capital Partners for U.S.$1.3 billion, while retaining a long-term lubricants supply agreement and its portfolio of lubricant brands. The company says it sold the non-core business to generate cash and focus on businesses it views as more important.
Jiffy Lube had been part of Shell Lubricants in the U.S. for more than 20 years and accounted for about 6.5% of the company’s lubricants volume in the United States and Canada.
The transaction was completed by Pennzoil Quaker State Co. trading as SOPUS Products, a wholly owned subsidiary of Shell USA Inc. that comprises Shell’s U.S. lubricants business.
The sale includes Jiffy Lube International, the Jiffy Lube brand and its network of franchised service centers, as well as Premium Velocity Auto LLC, which owns and operates Jiffy Lube franchised stores.
Shell retains its Pennzoil, Quaker State, Rotella and other Shell Lubricants brands, along with the marketing, manufacturing and distribution of lubricants in the U.S. and Canada across the consumer, commercial and industrial sectors. Under the deal, Pennzoil Quaker State will continue supplying lubricants to the business through a long-term agreement with Monomoy.
According to Shell, Monomoy has acquired Jiffy Lube International, including the registered trademark, which operates more than 2,000 franchised and company-owned service centers across the U.S. and through licensees in Canada.
The transaction also includes Premium Velocity Auto, the second-largest Jiffy Lube franchisee, with more than 360 locations across 20 states.