Shell to Sell Jiffy Lube Network to Monomoy in $1.3 Billion Deal

Core Insights - Shell plc has agreed to sell Jiffy Lube International and its subsidiary Premium Velocity Auto to Monomoy Capital Partners for $1.3 billion, marking a strategic exit from the U.S. quick-lube service business while retaining its core lubricants brands [1][2][3] Transaction Details - The transaction involves the divestment of the Jiffy Lube brand and its network of franchised automotive service centers, along with Premium Velocity Auto, which operates over 360 locations across 20 U.S. states [2][3] - Shell will enter into a long-term lubricants supply agreement with Monomoy, ensuring that Jiffy Lube locations continue to use Shell products post-sale [3] Strategic Rationale - This divestment aligns with Shell's strategy to optimize its downstream portfolio and focus on higher-return opportunities, allowing the company to monetize a non-core retail service business [4] - Shell executives emphasized that the sale enables reinvestment in opportunities that generate higher returns [4] Brand and Operations Retention - Shell will retain ownership of its core lubricant brands, including Pennzoil, Quaker State, and Rotella, along with manufacturing, marketing, and distribution operations in the U.S. and Canada [5] - Jiffy Lube has been part of Shell's operations for over two decades, operating more than 2,000 service centers in the U.S. and accounting for approximately 6.5% of Shell's total lubricants volume in the U.S. and Canada [6]