Shell Sells Jiffy Lube to Monomoy Capital Partners in a $1.3 Billion Deal

Shell Sells Jiffy Lube to Monomoy Capital Partners for $1.3 Billion

Shell plc, the renowned British energy corporation, has finalized an agreement to transfer ownership of Jiffy Lube International Inc to Monomoy Capital Partners in a deal valued at approximately $1.3 billion. This major move signals a pivotal change in Shell’s lubricants business across the U.S. and Canada, sharpening its focus on segments that promise higher returns.

Details of the Acquisition

The transaction encompasses Jiffy Lube International, which includes over 2,000 service centers—both franchised and company-operated—across the United States, as well as Canadian licensees. Monomoy Capital Partners will also acquire Premium Velocity Auto LLC (PVA Group), Jiffy Lube’s second-largest franchisee, which manages more than 360 outlets in 20 states. As part of the arrangement, Shell’s U.S. lubricants arm, Pennzoil Quaker State Company (operating as SOPUS Products), has entered into a long-term supply agreement with Monomoy, ensuring continued collaboration.

This divestment is part of Shell’s broader strategy to concentrate on its most profitable lubricant and mobility operations, while still maintaining a strong presence in manufacturing, distribution, and marketing of key brands like Pennzoil, Quaker State, and Rotella.

Jiffy Lube’s Role and Industry Influence

Jiffy Lube has been integral to Shell’s lubricants division for over two decades, offering oil changes, lubrication, and minor automotive repairs for cars and light trucks. The brand represents about 6.5% of Shell’s lubricants business in North America, making it significant but not central to Shell’s overall portfolio.

Lee Mlotek, managing director at Monomoy Capital Partners, highlighted Jiffy Lube’s longstanding reputation, stating that the brand revolutionized the quick oil change industry and continues to lead the market. This underscores Jiffy Lube’s enduring value in the automotive service sector.

Monomoy’s Strategic Direction

Monomoy Capital Partners aims to build on Jiffy Lube’s established market position by leveraging its own expertise in branded retail and automotive aftermarket services. The acquisition is expected to provide enhanced operational support for franchisees, while upholding Jiffy Lube’s high standards for service, customer satisfaction, and efficiency.

The deal, executed through a Monomoy affiliate and Pennzoil Quaker State Co (SOPUS Products), is being funded by Monomoy Fund V and is anticipated to close by the end of the year, pending regulatory approval.

Financial Impact on Shell

Shell views this sale as a strategic step to monetize assets outside its core focus, aligning with its goal to reduce structural costs by $5–$7 billion by 2028, as outlined during its March 2025 investor day. The proceeds from the $1.3 billion sale will be directed toward Shell’s high-growth lubricant and mobility businesses.

In 2025, Shell reported $2.39 billion in asset sales, including the divestment of its Nigerian petroleum development company, a Singapore petrochemical facility, and around 800 branded mobility sites. These actions reflect Shell’s ongoing commitment to refining its portfolio for greater profitability and growth.

Shell’s Lubricants Business Going Forward

Despite the sale of Jiffy Lube, Shell will continue to produce, market, and distribute lubricants throughout the U.S. and Canada. Flagship brands such as Pennzoil, Quaker State, and Rotella will remain at the heart of Shell’s lubricants strategy, ensuring the company maintains strong market presence and brand recognition.

Machteld de Haan, president of Shell’s Downstream, Renewables, and Energy Solutions division, noted that this move allows Shell to unlock value from a non-core asset and reinvest in areas with greater potential for returns, reinforcing the company’s focus on strategic growth opportunities.

Industry Impact and Future Prospects

This acquisition positions Monomoy Capital Partners as a significant force in the U.S. automotive service market, with Jiffy Lube’s extensive network providing immediate scale and operational capabilities. The deal aligns with broader industry trends that emphasize franchise expansion, operational excellence, and strong brand loyalty.

Jiffy Lube’s pioneering status in the quick oil change sector ensures it remains competitive, while Monomoy’s operational expertise is expected to drive further efficiency and expansion across its locations.

Summary

The transfer of Jiffy Lube International to Monomoy Capital Partners marks a strategic milestone for both companies. Shell, by divesting a non-core asset for $1.3 billion, sharpens its focus on high-return lubricant and mobility businesses. Meanwhile, Monomoy acquires a leading franchise platform with nationwide reach. This transaction highlights the evolving landscape of automotive services, where brand heritage, operational strength, and targeted investments are shaping the future of vehicle maintenance.

SHEL’s Stock Rating and Notable Alternatives

Currently, Shell (SHEL) holds a Zacks Rank #3 (Hold).

Investors seeking alternatives in the energy sector may consider higher-ranked stocks such as TechnipFMC (FTI) and Eni (E), both rated Zacks Rank #1 (Strong Buy), as well as Nabors Industries (NBR), which carries a Zacks Rank #2 (Buy).

• TechnipFMC (Market cap: $25.38 billion) is a global leader in energy technology, offering subsea, surface, and offshore/onshore project solutions for the oil and gas sector. The company specializes in integrated engineering, procurement, construction, and installation for complex energy projects.
• Eni (Market cap: $81.58 billion) is an Italian multinational based in Rome, operating across the energy value chain—from exploration and production to refining, marketing, and expanding renewable energy ventures worldwide.
• Nabors Industries (Market cap: $1.19 billion) is a global provider of drilling rigs and related services, with operations in over 20 countries, supporting oil and gas exploration through advanced technology and innovative solutions.

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