Shell selling Jiffy Lube to Monomoy Capital Partners

[Dave P.]

Shell selling Jiffy Lube Jiffy Lube International and its subsidiary Premium Velocity Auto to Monomoy Capital Partners for $1.3 billion.

Shell will keep Pennzoil and Quaker State and they will enter into an agreement to be suppliers to Monomoy.

 

[fantastic]

EV's will not need an oil change? Is that their thought long-term?

 

[SC Maintenance]

EV's will not need an oil change? Is that their thought long-term?

Shell is selling "non core" assets to compete more closely in valuation / earnings with the US supermajors. Same as BP.

 

[Snagglefoot]

Confucius says: All the young MBA’s come up with ideas to add branches to the tree but in the end, if the branches are not contributing with a decent ROR, the tree gets pruned and the cycle starts again.

 

[SC Maintenance]

Confucius says: All the young MBA’s come up with ideas to add branches to the tree but in the end, if the branches are not contributing with a decent ROR, the tree gets pruned and the cycle starts again.

I don't think thats fair here. Penzoil has owned Jiffy Lube for a very, very long time.

As for selling - its not MBA's. Its the fear of activist investors like the ones that forced BP to sell the Castrol brand.

Possibly the activist investors employ MBA's. But more likely its the financialization of everything. Corporate raiders of the 80's are now disguised as "activist funds".

 

[fantastic]

Shell is selling "non core" assets to compete more closely in valuation / earnings with the US supermajors. Same as BP.

That may be true but it had to have been a money loser & not looking like a great value anymore.

 

[Pablo]

EV's will not need an oil change? Is that their thought long-term?

Shell owns charging stations around here.

 

[Snagglefoot]

Another thing about the business is that consumers might be getting wise to things like Pennzoil Platinum having a 24,000 km (15,000 miles) "guarantee" or Pennzoil Ultra Platinum having a 32,000 km (20,000 miles) "guarantee" . Also auto sales have been stagnant in the USA and gasoline sales are down. Gasoline sales and mileage travel together except for some minor gas mileage adjustments and also lost gasoline sales to EV's. On a corporate presentation chart they all head down to the right. The buggy whip guys had the same conclusion.

 

[loneryder]

Some Jiffy Lubes were/are very good at what they do. I think it depends on local mgmt. That will probably go away.Investment groups never improve anything. They just bleed it all they can.

 

[Jimmy_Russells]

So... 3-4 years until bankruptcy then?

 

[SC Maintenance]

That may be true but it had to have been a money loser & not looking like a great value anymore.

Everything I have read said it made money.

Its also less volatile than there other businesses.

Clearly someone sees some reason to sell. It usually is a short term gain someone is looking for, in my experience.

 

[zzyzzx]

So... 3-4 years until bankruptcy then?

Yeah, but I am having trouble imagining how private equity is going to cut corners even more at Jiffy Lube.

 

[DCDG]

Shell will keep Pennzoil and Quaker State and they will enter into an agreement to be suppliers to Monomoy.

My local JIffy Lubes rock Pennzoil flair

 

[bullwinkle]

Some Jiffy Lubes were/are very good at what they do. I think it depends on local mgmt. That will probably go away.Investment groups never improve anything. They just bleed it all they can.

The Jiffy Lubes around here must have missed their education... Many of them have closed!

 

[fantastic]

Shell owns charging stations around here.

Interesting! I hadn't heard of any big oil names getting into the charging infrastructure but it all makes sense!

 

[fantastic]

Everything I have read said it made money.

Its also less volatile than there other businesses.

Clearly someone sees some reason to sell. It usually is a short term gain someone is looking for, in my experience.

Maybe I can reword it. It has been an excellent business model but that model has reached EOL for current owners to be interested in investing more money into it. Actually, perhaps there is no way to really invest anymore & that's the problem. The investors can make more money investing elsewhere?.

 

[Pablo]

Interesting! I hadn't heard of any big oil names getting into the charging infrastructure but it all makes sense!

https://www.shell.us/electric-vehicle-charging.html

 

[researcher]

Anytime I hear the phrase "Capital Partners" all I hear is "let's squeeze the last dime out of this company as we cut corners down the road to bankruptcy". Wash..rinse..repeat.

 

[tburke]

My local JIffy Lubes rock Pennzoil flair

same here. All of the locations in my area (owned by Premium Velocity) just all got remodeled, complete with new Pennzoil and "multi care" signage.

Shell owns charging stations around here.

They are plentiful in Houston, too -- a little overpriced, but to be expected for fast charging.

 

[97prizm]

EV's will not need an oil change? Is that their thought long-term?

Shell did open some charging stations.