Houston, TX
Jiffy Lube has provided high quality preventative automotive maintenance through their network of over 2,200 franchised service centers. When Jiffy Lube, a wholly owned subsidiary of Shell Oil Company, decided to dispose of fifteen of these properties, they turned to Colliers International.
The Challenge…
Jiffy Lube identified the fifteen sites they wanted to sell. The service centers were located across 7 states including Texas, Washington, Illinois, Indiana, Iowa, Ohio and Wyoming. The tenants were all Jiffy Lube franchisees, but their lease terms varied from at most 20-years remaining to as short as a couple of years. Further complicating maters was the fact that Jiffy Lube’s franchise agreement prevented any disclosures regarding the financial stability of the tenants.
Solutions…
Patrick completed a review of the locations, analyzed each lease and environmental report and developed a strategy for success. Patrick determined that selling each site individually would not accomplish Jiffy Lube’s goal. He decided to package all fifteen locations together to maximize the total sales price. He created a marketing package that include an in-depth financial overview and implemented a marketing plan that exposed the offering to over 40,000 qualified brokers and institutional and individual investors.
Results…
Patrick’s marketing plan brought in 7 offers to purchase the Jiffy Lube Package. Some offers were at full price but others were at a discount. Patrick reviewed each offer with Jiffy Lube, and they selected the Buyer who had the best ability to close the transaction. Only 129 days after initially introducing the Jiffy Lube Package to the market, Jiffy Lube was fully funded for the sale of all 15 sites. Jiffy Lube was so pleased with Patrick’s efforts that they asked him to work on an international site selection assignment for 25 new Jiffy Lubes located throughout Canada.
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