Pennzoil Quaker State Company under the name SOPUS Products is commencing a strategic review of its car care portfolio. As the first outcome of this review, the company has signed a letter of intent and is in advanced discussions to sell Auto Expressions, an auto accessories and air care business, to Kraco Enterprises LLC, an affiliate of private investment firm Sun Capital Partners.
Kraco Enterprises is a distributor of automotive aftermarket floor mats, including cargo floor mats for vehicle, home and shop use.
“Our Car Care brands are a valuable and growing part of our business,” says Lisa Davis, President for Shell Lubricants, Americas. “For them to achieve their full potential, they require additional continued focus and resources. This review will enable us to determine where we are best positioned to deliver growth and establish the best long-term scenarios for our successful car care brands.”
The proposed sale would include Auto Expressions operations in the U.S. and Hong Kong, as well as all Shell Car Care International activities and several licensing agreements with leading brands, including SC Johnson’s Glade® and Ed Hardy. Kraco plans to broaden its garage and floor mat product offering and establish a foothold to grow its accessory and floor mat business internationally with the addition of the Auto Expressions business.
Shell’s Car Care business is a comprehensive portfolio of leading care car brands including Rain-X, Auto Expressions, Fix-a-Flat, Black Magic, Blue Coral and Westley’s, Gumout, Slick 50 The Outlaws.
SOPUS Products representatives expect to complete the review and announce results by the end of the third quarter 2010.
