A Shell subsidiary that encompasses the company’s lubricant business in the United States has initiated a new agreement with New York Financial institution, Monomoy Capital Partners.
Under the terms of the $1.3 billion transaction, Shell will sell Monomoy, its Premium Velocity Auto and its Jiffy Lube International businesses. As part of the deal, Shell’s wholly owned company, Pennzoil Quaker State, has also entered into a long-term agreement to supply lubricants with Monomoy.
The deal includes both the Jiffy Lube label and a network of independently owned Jiffy Lube franchised stores that are operated by Premium Velocity Auto. However, Shell will keep ownership of its other lubricant brands like Rotella and Pennzoil Quaker State, and control of the manufacturing, distribution and marketing of its lubricant dealings in North America that serve industrial, commercial and consumer sectors.
The Jiffy Lube brand has been part of Shell Lubricants for over two decades, consistently supplying strong performances and becoming a trusted source of oil and grease products for millions. The Jiffy Lube International franchise comprises around 6.5 per cent of Shell’s lubricant business in the US and Canada, and provides both technical services and quality products ranging from engine and gear oil to coolant and transmission fluid.
Commenting on the recent transaction, Shell PLC’s President for Downstream, Renewables and Energy, Machteld de Haan, said that the move will let the company capitalise on an opportunity to monetise an asset non-central to Shell Lubricant’s US portfolio and reinvest resources to generate greater returns.
The deal is expected to complete later this year after receiving regulatory approval.
