Pennzoil Quaker State Company - operating as SOPUS Products and a wholly owned subsidiary of Shell USA, Inc. - has reached an agreement to sell Jiffy Lube International and its subsidiary Premium Velocity Auto LLC to an affiliate of Monomoy Capital Partners for $1.3 billion.
The transaction transfers ownership of the Jiffy Lube brand and the network of franchised service locations, which are owned and run by independent franchisees, together with the franchised stores operated by Premium Velocity Auto. As part of the arrangement, Pennzoil Quaker State Company and Monomoy will enter into a long-term agreement under which Shell will supply lubricants to the Jiffy Lube business.
Shell will keep its Pennzoil Quaker State, Rotella and other Shell-branded lubricants. The company will also continue to manage marketing, manufacturing and distribution of lubricants across the U.S. and Canada, serving consumer, commercial and industrial markets.
Strategic intent and statement from Shell
According to Machteld de Haan, President, Downstream, Renewables and Energy Solutions at Shell plc, the divestiture allows the company to realize value from an asset that it views as non-core within its U.S. lubricants portfolio and to redeploy proceeds into opportunities expected to deliver higher returns.
Summary
Shell’s Pennzoil Quaker State Company is selling Jiffy Lube International and Premium Velocity Auto LLC to a Monomoy Capital Partners affiliate for $1.3 billion. The sale includes the Jiffy Lube brand and franchised service locations. Shell will maintain ownership of its lubricants brands and its U.S. and Canadian manufacturing, marketing and distribution footprint, and will remain a supplier to the Jiffy Lube business under a long-term deal.
Key points
- Transaction value: $1.3 billion for Jiffy Lube International and Premium Velocity Auto LLC.
- Assets transferred: Jiffy Lube brand plus network of franchised stores (both independent franchisees and those operated by Premium Velocity Auto).
- Post-sale arrangements: Shell retains Pennzoil Quaker State, Rotella and other lubricants brands, plus manufacturing, marketing and distribution in the U.S. and Canada, and signs a long-term supply agreement with Monomoy.
Risks and uncertainties
- Integration risk for the buyer - Monomoy will assume control of a branded franchise network that is run by independent franchisees and stores previously operated by Premium Velocity Auto.
- Supply reliance - Jiffy Lube’s operations will be dependent on the long-term lubricants supply agreement with Shell, creating commercial exposure for both the franchised service network and Shell’s distribution commitments.
- Portfolio focus - Shell is monetizing an asset it considers non-core within its U.S. lubricants portfolio; the company’s ability to redeploy proceeds into higher-return opportunities is subject to execution risk.
This article is focused on the transaction terms and stated corporate positions. Where the original information provided limited detail, this report reflects those limits rather than introducing additional facts.