Monomoy Capital Buys Jiffy Lube, Premium Velocity for $1.3B

Monomoy Capital Partners has finalized a significant acquisition, taking control of both Jiffy Lube International and its affiliate Premium Velocity Auto. The transaction, valued at a substantial $1.3 billion, marks a major move for the private equity firm within the automotive aftermarket services sector. This strategic purchase was completed following an agreement with Shell Oil Products U.S., which previously operated these entities through its subsidiaries Pennzoil Quaker State Company and SOPUS Products.

The automotive maintenance and repair industry is experiencing robust growth, driven by an aging vehicle fleet and increasing consumer demand for convenient, reliable services. Jiffy Lube, a well-established brand with a widespread network of quick lube and automotive service centers, is positioned to benefit from these favorable market dynamics. Premium Velocity Auto, which complements Jiffy Lube's offerings, further strengthens the combined entity's market presence.

This deal underscores a broader trend of private equity firms actively investing in essential consumer services that demonstrate resilience and consistent demand. The quick lube segment, in particular, has seen increased M&A activity as operators seek scale and operational efficiencies. Industry reports indicate the global automotive aftermarket services market is projected to reach hundreds of billions of dollars in the coming years, fueled by technological advancements and evolving consumer preferences.

Monomoy Capital Partners, known for its operational expertise and focus on middle-market companies, is expected to leverage its experience to enhance the operational performance and strategic growth of Jiffy Lube and Premium Velocity Auto. The firm's approach typically involves driving value through process improvements, technology adoption, and strategic add-on acquisitions, suggesting a proactive management strategy for its new portfolio companies.

The divestiture by Shell Oil Products U.S. aligns with a strategic refocusing for the energy giant, allowing it to concentrate on its core refining and marketing operations. While Shell is exiting direct ownership of these automotive service brands, the transaction highlights the inherent value and potential within established service networks that can be unlocked by specialized investment firms like Monomoy Capital Partners.

This acquisition represents a significant capital deployment for Monomoy Capital Partners and signals confidence in the long-term prospects of the automotive service sector. The integration of Jiffy Lube and Premium Velocity Auto under Monomoy's ownership is anticipated to create a more streamlined and competitive business, capable of capturing greater market share and delivering enhanced value to customers across the United States.