Shell sells Jiffy Lube for $1.3 Billion to Monomoy Capital

Shell announced on Monday that it would sell its Jiffy Lube chain of lubricant shops to an affiliate of private equity firm Monomoy Capital Partners for $1.3 billion. The oil major is continuing to divest non-core assets as part CEO Wael sawan's strategy.

Premium Velocity Auto is also included in the sale, which is the second largest Jiffy Lube franchise.

Pennzoil Quaker State Company is a 'wholly-owned subsidiary of Shell USA, that includes Shell's U.S. Lubricants Business. The agreement also includes a long term lubricants agreement.

Shell executive Machteld De Haan said, "By capitalizing a strong market opportunity and this divestment, we are able to monetize a asset that's not central to Shell's U.S. lubricant portfolio. We can then reinvest the proceeds in opportunities which generate higher returns."

Since 2002, Jiffy Lube is a Shell subsidiary. Jiffy Lube is an American chain that was founded in 1971 to provide automotive oil changes. Shell's U.S. and Canada total lubricants sales are about 6.5% higher due to the chain. Premium Velocity Auto operates 360 locations in 20 U.S. States.

Sawan has been at the helm since 2023 and pursued a?value-over-volume? strategy, scrapping offshore wind and hydrogen projects, Nigerian onshore operations as well as a Singapore chemicals parks and a retail network in Indonesia and Mexico.

Stonepeak, a rival BP company, agreed in December to purchase a 65% share of Castrol lubricants for $6 billion.

Shell will keep its Pennzoil, Quaker State and Rotella brands as well as manufacturing, marketing, and distribution of lubricants within the U.S. (Reporting from DhanushVigneshbabu in Bengaluru, Editing by Sahal Muhammad)

(source: Reuters)