Shell acquires Allied Reliability, expanding its North American lubricants business
On December 22, 2022, Pennzoil-Quaker State Company d/b/a SOPUS Products, a wholly-owned subsidiary of Shell USA, Inc. that comprises Shell's U.S. lubricants business, acquired 100% of TFH Reliability Group, LLC, the parent company of Allied Reliability Inc. ("Allied Reliability").
Allied Reliability – formerly a portfolio company of Capstreet, a Houston-based private equity firm – is a provider of industrial products and services, asset performance management and reliability consultancy services to business-to-business customers in North America. The company works across a wide range of industries and delivers enhancements in the efficiency and reliability of assets.
"In addition to expanding the suite of lubricants products we can offer customers, acquiring a proven, credible player in the industrial services space allows us to offer a 'products-plus-services' model that can help customers drive improvements in performance and safety for their equipment," said Executive Vice President of Global Lubricants Machteld de Haan. "This fits in perfectly with our global lubricants strategy to grow our premium product offering and presence in the industrial sector, as well as offering complementary services to deliver a strong value proposition for our customers."
This deal was structured to simultaneously sign and close.
Allied Reliability will be an indirect, wholly owned subsidiary of Shell and fully consolidated within its Lubricants marketing business beginning December 22.
Shell Lubricants sells a wide variety of lubricants to meet customer needs across a range of applications in over 100 countries. Shell was named the leading global supplier of finished lubricants for a 16th consecutive year, according to the 20th edition of Kline & Company's report Global Lubricants: Market Analysis and Assessment 2021. Visit www.shell.com/lubricants for more information.
The global lubricants market is expected to grow well into 2030s and beyond. The gross margin pool of industrial lubricants is expected to grow up to 50% by 2035 according to McKinsey Global Lubricants Demand Model 2022.
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