Jiffy Lube has been acquired by a private equity firm in a deal valued at $1.3 billion.

      A Jiffy Lube in Long Beach, California, captured in 2002.

      Bob Riha, Jr./Getty Images

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      You might know someone who has had a negative experience with Jiffy Lube and promised to never return. Nevertheless, for better or worse, quick oil-change establishments like Jiffy Lube are essential for basic vehicle maintenance for a significant portion of the population, and many drivers keep returning. For nearly 25 years, Jiffy Lube was owned by Shell, but as of this month, it has been acquired by a private equity firm named Monomoy Capital Partners.

      The sale agreement was finalized in March, and on July 1, Monomoy declared the transaction was closed for $1.3 billion. Currently, Jiffy Lube operates around 2,000 service centers throughout North America, all managed by independent operators. The company originated in 1971 in Utah. Two decades later, it was acquired by Pennzoil, which then merged with Quaker State before Shell acquired both in 2002.

      Recently, Jiffy Lube represented 6.5% of Shell’s overall lubricants business, according to the Wall Street Journal. Shell is positioning this move as part of a larger strategy to divest what it sees as “non-core” interests, which also includes offshore drilling assets. Pennzoil Quaker State, which will remain part of Shell, will still supply products to the chain for now.

      Regarding Jiffy Lube, this sale reflects a trend in the 2020s where investment capital is targeting franchise brands. Food chains have often been the focus, with Red Lobster serving as a notable example of the pitfalls that can arise when private equity intervenes. Some of these firms have also acquired franchise operators; in this situation, Monomoy is taking over Premium Velocity Auto, the second-largest Jiffy Lube franchisee in the country, which runs 360 of those 2,000 locations.

      One analyst notes that shops like Jiffy Lube have been drawing customers away from dealership service departments recently due to their comparatively lower prices.

      This sale has mostly gone unnoticed so far, but the reactions from those who are aware can be summed up by one comment in a forum stating, “I can’t imagine how private equity is going to cut corners even further at Jiffy Lube.” As with all franchises, some take better care of their brands and are more effective in serving customers than others. Only time will tell how Jiffy Lube navigates this new phase.

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