Shell to Sell Jiffy Lube Network to Monomoy in $1.3 Billion Deal
Shell plc (NYSE: SHEL) has agreed to sell Jiffy Lube International and its subsidiary Premium Velocity Auto (PVA) to an affiliate of Monomoy Capital Partners for $1.3 billion, marking a strategic exit from the U.S. quick-lube service business while maintaining its core lubricants brands.
The transaction, announced Monday, involves Pennzoil Quaker State Company—Shell’s U.S. lubricants subsidiary—divesting the Jiffy Lube brand and its network of franchised automotive service centers. The deal also includes the sale of Premium Velocity Auto, the second-largest Jiffy Lube franchisee, which operates more than 360 locations across 20 U.S. states.
As part of the agreement, Shell will enter into a long-term lubricants supply arrangement with Monomoy, ensuring that Jiffy Lube locations continue to use Shell products after the sale. The transaction is expected to close in the second half of 2026, subject to regulatory approvals and customary closing conditions.
The $1.3 billion divestment enables Shell to monetize a non-core retail service business while preserving demand for its lubricant brands through a supply agreement with the new owner.
Shell executives said the move aligns with the company’s broader effort to optimize its downstream portfolio and allocate capital toward higher-return opportunities.
“By capitalizing on a strong market opportunity, this divestment allows us to monetize an asset that is not central to Shell’s lubricants portfolio in the U.S. and reinvest in opportunities that generate higher returns,” said Machteld de Haan, President of Downstream, Renewables and Energy Solutions at Shell.
Shell will retain ownership of its core lubricant brands—including Pennzoil, Quaker State, Rotella, and other Shell-branded products—along with manufacturing, marketing, and distribution operations across the U.S. and Canada. These businesses supply consumer, commercial, and industrial lubricant markets.
Jiffy Lube has been part of Shell’s lubricant operations in the United States for more than two decades. The brand operates over 2,000 service centers across the U.S., with additional licensees in Canada, offering oil changes, lubrication services, and light automotive repairs for cars and light trucks.
According to Shell, Jiffy Lube accounts for roughly 6.5% of the company’s total lubricants volume in the U.S. and Canada.
Premium Velocity Auto, included in the sale, is one of the largest operators within the franchise network, running hundreds of service centers under the Jiffy Lube brand.
The divestment reflects a broader trend among energy majors to streamline downstream portfolios and focus on core operations with stronger margins or strategic alignment with the energy transition.
Shell has been actively reshaping its asset base in recent years, prioritizing integrated energy operations, LNG trading, and low-carbon businesses while reducing exposure to non-core retail operations. The company remains a dominant player in the global lubricants market, having led the sector by volume for more than 19 consecutive years, according to Kline & Company.
In the United States, Shell maintains a large energy footprint, including its position as the largest producer in the deepwater Gulf of Mexico, the largest buyer of U.S. LNG, and the operator of approximately 12,000 branded retail fuel stations nationwide.
Monomoy Capital Partners, a private investment firm focused on middle-market industrial and consumer businesses, is expected to expand Jiffy Lube’s footprint and operational platform following the acquisition.
With the addition of Premium Velocity Auto’s store network, the deal gives Monomoy direct control over a large portion of the Jiffy Lube ecosystem while maintaining franchise relationships across the broader network.
By Charles Kennedy for Oilprice.com
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