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

      A Jiffy Lube location in Long Beach, California, photographed in 2002.

      Bob Riha, Jr./Getty Images

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      You likely know someone who has a tale about a bad experience at Jiffy Lube, leading them to swear off returning. Nevertheless, for better or worse, fast oil-change establishments like Jiffy Lube are fundamental to basic car maintenance for many people, and a significant number of drivers are repeat customers. For almost 25 years, Jiffy Lube was owned by Shell, but this month it has been acquired by the private equity firm Monomoy Capital Partners.

      The agreement for the sale was finalized in March, and on July 1, Monomoy announced the deal's completion at a price of $1.3 billion. Currently, Jiffy Lube operates approximately 2,000 service centers across North America, managed by independent operators. The company was founded in 1971 in Utah. Two decades later, it was acquired by Pennzoil, which later merged with Quaker State before both brands were bought by Shell in 2002.

      Recently, Jiffy Lube accounted for 6.5% of Shell’s total lubricants business, according to the Wall Street Journal. Shell is framing this move as part of a more extensive strategy to divest what it considers “non-core” assets, which also includes offshore drilling properties. Pennzoil Quaker State will continue to supply products to Jiffy Lube for the time being.

      Regarding Jiffy Lube, this sale aligns with a trend in the 2020s of investment firms targeting franchise brands. Their focus has often been on restaurants, with Red Lobster serving as a notable example of what can go awry when private equity steps in. Additionally, some investment groups have purchased franchisees; in this instance, Monomoy is also acquiring Premium Velocity Auto, the second-largest Jiffy Lube franchisee in the nation, which manages 360 of those 2,000 locations.

      An analyst noted that Jiffy Lube has been drawing business away from dealership service departments recently due to its comparatively lower prices.

      This sale has mostly gone unnoticed so far, but the reactions from those who are aware can be summed up by a comment on a forum stating, “I am struggling to envision how private equity will further cut corners at Jiffy Lube.” As with all franchises, certain operators are more adept at managing their brands and serving customers than others. Only time will reveal how Jiffy Lube navigates this new chapter.

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