Monomoy Capital Partners' $1.3bn Acquisition of Jiffy Lube
- 1 day ago
- 6 min read
By Diana Usova, Oliver Cedar, Dylan Stiassny, and Obianuju Okafor (University of Bristol); Chris Ruan, Autumn Casella, Zack Siegel, and Christian Labonte (University of California Los Angeles)
Photo: Jack White (Unsplash)
Overview of the deal
Acquirer: Monomoy Capital Partners (via Fund V)
Target: Jiffy Lube International, Inc. and Premium Velocity Auto LLC (acquired from Shell USA / Pennzoil Quaker State Co.)
Implied Equity Value: ~$1.3 billion
Total Transaction Size: ~$1.3 billion
Closed Date: Expected to close in the second half of 2026.
Target Advisor: Not publicly disclosed in deal announcements (Note: Travis Torrence, Head of Legal for Shell USA, managed internal legal matters for the seller).
Acquirer Advisor: RBC Capital Markets (financial), Kirkland & Ellis LLP (legal)
On March 9, 2026, Shell announced the divestment of its automotive service chain, Jiffy Lube, to private equity firm Monomoy Capital Partners in a transaction valued at $1.3 billion, expected to close in the second half of 2026.
For Shell, the carve-out of Jiffy Lube's 2,000+ locations allows the energy giant to monetize a non-core asset, representing just 6.5% of its U.S. and Canada lubricants volume, and reinvest capital into higher-return opportunities. By shedding the operational burden of retail management, Shell optimizes its downstream focus while securing a long-term agreement to remain the exclusive supplier of its Pennzoil, Quaker State, and Rotella motor oils to the franchise.
Conversely, Monomoy acquires a highly resilient, cash-generative platform. Jiffy Lube provides a predictable stream of franchise royalties anchored by recession-resistant demand, as consumers increasingly maintain aging vehicles rather than purchasing new ones. The private equity firm plans to scale the business by expanding into comprehensive, higher-margin automotive care, including brakes, batteries, and tires. Ultimately, this strategic divestment insulates Shell from retail fluctuations while providing Monomoy with a solid, profitable market leader primed for operational expansion.
Company Details (Acquirer - Monomoy Capital Partners (Fund V))
Monomoy Capital Partners is a middle market private equity firm specialized with investments in manufacturing and industrial businesses. Monomoy improves company value through upgrades in supply chain process and production rather than just changing financially. The firm has a history of acquiring complex business strategies or underperforming companies and turning them into profitable companies, positioning them for long term growth and returns.
Founded: 2005
Headquartered: Greenwich, Connecticut, United States
CEO: Justin Hillenbrand and Daniel Collin
Number of employees: ~80
Market Cap: $2.25 Billion (as of 09/07/2024) (Fund V)
EV: N/A
LTM Revenue: N/A
LTM EBITDA: N/A
LTM EV/Revenue: N/A
LTM EV/EBITDA: N/A
Recent Transactions: Acquisition of Velocity Auto (March 2026), Acquisition of Southern Exteriors (May 2024), Acquisition of Oliver Packaging and Equipment (November 2024)
Company Details (Target - Jiffy Lube)
Jiffy Lube is a dominant player in the automotive services sector, specializing in high-volume vehicle maintenance and preventative care. Jiffy Lube drives franchise value through a standardized, rapid-service model and proprietary technician training programs rather than relying solely on individual repairs. The brand has a history of transforming the traditional oil change into a streamlined, tech-enabled consumer experience, positioning its service centers for consistent operational efficiency and long-term market leadership.
Founded: 1971
Headquartered: Houston, Texas, USA
CEO: Mauricio Quezada
Number of employees: c.5000
Market Cap: N/A
Enterprise Value: N/A
LTM Revenue: N/A
LTM EBITDA: N/A
LTM EV/Revenue: N/A
LTM EV/EBITDA: N/A
Projections and Assumptions
Short-Term Consequences
Effect of the transaction on the earnings: Shell: Slightly accretive. The $1.3B in proceeds are expected to fund buybacks, which more than offsets the earnings drag from losing ~6.5% of US/Canada lubricants volume (very small relative to Shell’s $18.5B in 2025 adj. earnings).
Change on the product offering: Under Shell, Jiffy Lube was tied to Pennzoil and Shell-branded lubricants. Now, as a standalone entity, the door is opened to multi-brand lubricant offerings or even third part sourcing. In addition, Jiffy Lube will expand the horizon of its services: in the 2010s, Shell helped Jiffy Lube expand from just oil changes to brake pad replacements, brake system inspections and battery testing and replacement. Now, they plan to embrace electric vehicle maintenance, integrating digital tools and shifting towards a sustainability focus.
Change in the geographic operations: The geographic operations will generally remain unchanged following the transaction as over 2,000 of Jiffy Lube’s franchises in the US and Canada will continue to stand. Monomoy will receive additional operational control over JiffyLube’s second franchise, Premium Velocity Auto, LLC, which has 360 locations in over 20 US states.
Effect on leadership/management/employees: In the short term, leadership will remain the same throughout the transition. However, as a private equity company, Monomoy will provide operational oversight to the management team. There will likely be no immediate effect on employees, but Monomoy aims to leverage Jiffy Lube’s existing “multicare model” focused on improving employee efficiency.
Market reaction that might already have taken place since it’s announcement: The market responded positively towards Shell over the month of March 2026 with Shell’s stock rising 15.6%. This is largely due to investors seeing a strategic operational change, allowing Shell to reinvest in higher return opportunities.
Long-Term Upsides
The acquisition represents a chance for both Monomoy and Jiffy Lube to heighten their operations through their unique competitive advantages. Monomoy Capital Partners expertise and historical success lies in providing operational support to branded retailers and automotive aftermarket businesses. This can give Jiffy Lube the chance to improve efficiency, continue to standardise processes and support franchises to the fullest extent.
The acquisition also poses a strategic upside for Jiffy Lube who previously functioned as a subsidiary within the Shell group. Now, being a core part of Monmoy Capital Partners, Jiffy Lube will benefit from core strategic support and focused capital allocation, which will enhance operative efficiency in the long term. Jiffy Lube has immense growth upside with a large customer base spanning 19 million customers within 2,000 service centres, underlining how a further expansion into different types of products could have a strong effect on revenue growth and market expansion.
Crucially, Jiffy Lube provides a business which has heritage and scale to grow, which will ultimately be enhanced through Monomoy’s expertise in providing the necessary operational support to retailers. Jiffy Lube’s solid financial results give Monomoy an opportunity to tap into different financing structures which could be beneficial for strong future cash flows.
The deal aims to address the core customer experience, and the transaction could prove to be successful through customer retention, enhanced experiences, upselling and a greater frequency of customer visits.
Risks and Uncertainties
The acquisition of Jiffy Lube by Monomoy Capital Partners presents several execution and structural risks.
Firstly, the valuation and leverage profile introduces downside risk. The transaction, valued at approximately $1.3 billion (17x EBITDA), implies a premium multiple of a mature, service-based business. Such pricing makes strong operational movements and sustained earning growth to justify returns necessary, particularly in a competitive aftermarket environment where margin expansion may be limited.
Secondly, operational transition risk is material. As a private equity sponsor, Monomoy is expected to implement cost optimisation and efficiency initiatives. However, these changes could disrupt Jiffy Lube’s established franchise model and operational consistency across its 2000+ locations. Thirdly, the shift from corporate to financial ownership introduces uncertainty. Having operated under Shell for 23 years, Jiffy Lube may face leadership turnover and strategic repositioning, which could impact execution in the near term.
From an industry perspective, the long-term transition toward electric vehicles (EVs) presents structural risk, as EVs require significantly less routine maintenance than internal combustion engine vehicles, potentially ending demand for core services. Additionally, the transaction remains subject to customary regulatory approvals and closing conditions, which may delay completion. Finally, competitive pressures and labour constraints within the automotive aftermarket, particularly a shortage of skilled technicians, may limit growth and operational scalability.
"As the original pioneer of the fast oil change, Jiffy Lube reshaped the industry and remains the market leader today. We are incredibly excited to partner with our franchisees to enhance the customer experience and value proposition that has made Jiffy Lube a trusted name for generations." - Lee Mlotek, Managing Director at Monomoy
Sources
The Automotive Aftermarket Industry Is Highly Attractive for Private Equity Investors | Jefferies.com.