Shell has agreed to sell Jiffy Lube International to an affiliate of Monomoy Capital Partners for $1.3 billion.

Jiffy Lube has been a part of Shell Lubricants in the US for more than 20 years, providing lubrication, oil change, and light repairs for cars and light trucks. The business makes up about 6.5 per cent volume of Shell’s US and Canada lubricants business.

The sale includes the Jiffy Lube brand and a network of more than 2000 franchised and company-owned locations across the US, as well as licensed stores in Canada. Monomoy will also acquire Premium Velocity Auto, the second-largest Jiffy Lube franchisee, with over 360 locations across 20 states.

As part of this transaction, Pennzoil Quaker State Company, a wholly owned subsidiary of Shell, has entered into a long-term lubricants supply agreement with Monomoy.

Shell will retain its Pennzoil Quaker State, Rotella and other Shell lubricants brands, along with marketing, manufacturing and distribution of lubricants for consumer, commercial and industrial sectors in the US and Canada.

“By capitalizing on a strong market opportunity, this divestment allows us to monetize an asset that is not central to Shell’s lubricant’s portfolio in the US and reinvest in opportunities that generate higher returns,” said Machteld de Haan, president of downstream, renewables and energy solutions at Shell.

The deal is expected to close in the second half of this year.