Finance
Shell to offload jiffy lube, premium velocity to monomoy capital for $1.3 billion
Published by Global Banking & Finance Review®
Posted on March 9, 2026
2 min readLast updated: March 9, 2026
Quick Summary
Shell will sell its Jiffy Lube and Premium Velocity Auto divisions to Monomoy Capital Partners for $1.3 billion, part of CEO Wael Sawan’s strategy to divest non‑core assets and concentrate on higher‑return operations.
Shell to offload Jiffy Lube to Monomoy Capital for $1.3 billion
Shell's Divestment of Jiffy Lube: Key Details and Strategic Implications
Overview of the Sale
March 9 (Reuters) - Shell said on Monday it will sell its Jiffy Lube lubricant shop chain to an affiliate of private equity firm Monomoy Capital Partners for $1.3 billion, as the oil major continues to shed non-core assets under CEO Wael Sawan's strategy to focus on higher-return businesses.
The sale also includes Premium Velocity Auto, the second-largest Jiffy Lube franchise.
Transaction Structure and Agreements
Pennzoil Quaker State Company’s Role
Pennzoil Quaker State Company, a wholly owned subsidiary of Shell USA that comprises Shell's U.S. lubricants business, entered the agreement, which also includes a long-term lubricants supply agreement.
Shell’s Strategic Rationale
"By capitalizing on a strong market opportunity, this divestment allows us to monetize an asset that is not central to Shell's lubricant's portfolio in the U.S. and reinvest in opportunities that generate higher returns," said Shell executive Machteld de Haan.
Background on Jiffy Lube and Premium Velocity Auto
Jiffy Lube’s Market Position
Jiffy Lube, an American chain of automotive oil change specialty shops founded in 1971, has been a subsidiary of Shell since 2002. The chain makes up about 6.5% of Shell's U.S. and Canada total lubricants volume. Premium Velocity Auto has 360 locations operating in 20 U.S. states.
Shell’s Broader Strategic Shift
CEO Wael Sawan’s “Value Over Volume” Approach
Sawan, who took the helm in 2023, has pursued a "value over volume" strategy, scrapping offshore wind and hydrogen projects as well as Nigerian onshore operations, a Singapore chemicals park and retail networks in Indonesia and Mexico.
Industry Context and Competitor Moves
Rival BP in December agreed to sell a 65% stake in lubricants business Castrol to Stonepeak for $6 billion.
Shell’s Retained Lubricants Business
Brands and Operations Maintained
Shell will retain its Pennzoil, Quaker State, Rotella and other Shell lubricant brands, along with manufacturing, marketing and distribution of lubricants in the U.S. and Canada.
Reporting Credits
(Reporting by DhanushVignesh Babu in Bengaluru; Editing by Sahal Muhammed)
Key Takeaways
- •Shell is shedding mobility and auto‑service businesses to refocus on core energy and higher‑margin ventures — part of a strategic pivot under CEO Wael Sawan to optimize capital allocation.
- •Monomoy Capital Partners, a private equity firm known for middle‑market operational improvements, will acquire Jiffy Lube and Premium Velocity Auto, expanding its automotive services portfolio (Monomoy manages over $5.3 billion in assets) (mcpfunds.com).
- •The $1.3 billion sale underscores Shell’s ongoing retreat from non‑core retail assets, aligning with prior moves such as reviewing chemical assets and reducing exposure to renewables to boost returns (straitstimes.com)
References
Frequently Asked Questions about Shell to offload Jiffy Lube, Premium Velocity to Monomoy Capital for $1.3 billion
1Who is acquiring Jiffy Lube and Premium Velocity from Shell?
An affiliate of private equity firm Monomoy Capital Partners is acquiring Jiffy Lube and Premium Velocity from Shell.
2What is the value of the deal between Shell and Monomoy Capital Partners?
The deal is valued at $1.3 billion.
3Why is Shell selling Jiffy Lube and Premium Velocity?
Shell is selling these subsidiaries as part of CEO Wael Sawan's strategy to focus on higher-return businesses and shed non-core assets.
4Which companies are included in the Shell sale to Monomoy Capital Partners?
The companies included are Jiffy Lube and Premium Velocity Auto.
