STP (motor oil company)

History

Beginning and evolution

Chemical Compounds was founded in 1953 by three businessmen, Charles Dwight (Doc) Liggett, Jim Hill and Robert De Hart, with $3,000 in start-up capital in St. Joseph, Missouri. Their sole product was "STP Oil Treatment"; the name was derived from “Scientifically Treated Petroleum”. In 1961, the company was acquired by the Studebaker-Packard Corporation.

Studebaker briefly tied STP into its advertising as an abbreviation for “Studebaker Tested Products”. However, Studebaker-Packard CEO Sherwood Egbert felt that STP could one day outpace its parent company and recruited Andy Granatelli as the CEO of STP to help raise the product’s image. At the same time, Granatelli became the public face of STP, often wearing a white suit emblazoned with the red oval STP logo to races, distributing thousands of all-weather STP stickers. Granatelli ran two Novi specials at the 1964 Indianapolis 500. Jim Hurtubise and Bobby Unser were the drivers. An hour-long black and white film called Way of a Champion was made of the 1964 and 1965 races, centering on the Novis.

Studebaker exited the auto manufacturing and sales business in 1966 and launched new strategies to expand and develop its other corporate business units including the Studebaker petroleum division. Under the new Studebaker strategy, STP sales continued to grow. to the point where it was spun off into a publicly traded company in 1969. In 1976, it was acquired by Esmark which itself was purchased by Beatrice Foods in 1984. Beatrice sold STP to Union Carbide the next year. In 1986, Union Carbide's auto products, which included Prestone and Simoniz, were subject to a leveraged buyout. The resulting company, First Brands, was purchased by Clorox in 1998.

In the fall of 2006, STP fuel additives began being used in Marathon gasolines, likely to compete with Chevron's Techron additive.

In 2010, Clorox sold Armor All and STP to Avista Capital Partners. It named the business Armored AutoGroup. In April 2015, the Armored AutoGroup was acquired by Spectrum Brands. Energizer bought the Spectrum's auto care brands (including Armor All, A/C Pro and STP) for $1.25 billion in cash and stock.

Legal issues

In 1976, STP faced a consumer protection order that required it to have scientific backing for certain statements and prohibited making false claims. In 1978, it paid a $500,000 civil penalty over claims. In 1995, STP paid $888,000 to settle Federal Trade Commission charges of false advertising.

Brand owners

Oil treatment

STP Oil Treatment contains zinc dithiophosphate as an anti-wear additive.

Involvement in motor racing and sponsorships

In 1970, STP CEO Andy Granatelli founded the STP Formula One Team. Mario Andretti was hired to drive. The team competed in a total of five races running a March Engineering chassis, their best result being a third place at the 1970 Spanish Grand Prix. In 1972 Granatelli agreed to sponsor NASCAR champion Richard Petty, but their deal almost fell apart before their first race. Granatelli insisted the car be STP day-glo red. Petty held out for his iconic Petty blue, and neither would budge. The resulting two-tone red and blue scheme became more famous than either color alone.

STP sponsored Petty through the end of his driving career in 1992, then Bobby Hamilton, and John Andretti in Petty Enterprises' famous #43. That partnership ended shortly after its acquisition by Clorox. STP and the Petty family hold the second-longest relationship in automobile racing history (1972–2000).

In August 2012, STP announced that it would be the title sponsor of the World of Outlaws Sprint Car Series in 2013.

On February 21, 2013, STP announced a return to NASCAR Sprint Cup Series sponsorship in a multi-year deal for the STP Gas Booster 500 starting April 7, 2013 at Martinsville Speedway along with a return as primary sponsor of the Richard Petty Motorsports No. 43 for the 2013 STP Gas Booster 500. STP also sponsored the Xfinity Series race STP 300 from 2011 to 2013 at Chicagoland Speedway.

References

References

1. [https://stpautoparts.in/brand-history.php Brand history] on stpautoparts.in
2. Balu, Nivedita. (2018-11-15). "Energizer adds Armor All, STP brands in $1.25 billion Spectrum deal". [[Reuters]].
3. "The history of STP".
4. "FAQs: General".
5. (August 6, 2012). "Marathon Gasoline with STP Additives".
6. HRG Group, Inc.. (April 28, 2015). "HRG Group, Inc. Announces Armored AutoGroup Acquisition By Spectrum Brands".
7. (December 4, 1995). "U.S. Settlement Reached on STP Oil Ads". The New York Times.
8. (December 1, 1995). "STP To Pay $888,000 Civil Penalty To Settle Charges Over Ad Campaign For STP Engine Treatment". [[Federal Trade Commission]].
9. [https://www.gracesguide.co.uk/STP STP brand history] on gracesguide.co.uk
10. [https://www.latimes.com/archives/la-xpm-1985-04-10-fi-7654-story.html Union Carbide plans to acquire STP from Beatrice Companies] on ''Los Angeles Times''. 10 Apr 1985
11. [https://www.reuters.com/article/business/clorox-may-sell-stp-armor-all-wsj-idUSN09252113/ Clorox may sell STP, Armor All - WSJ] on Reuters.com. Apr 9, 2010
12. [https://www.prnewswire.com/news-releases/avista-capital-partners-agrees-to-acquire-the-clorox-companys-global-auto-care-business-103428029.html Avista Capital Partners Agrees to Acquire The Clorox Company's Global Auto Care Business]. 21 Sep 2010
13. [https://investor.spectrumbrands.com/news-releases/news-release-details/spectrum-brands-holdings-acquire-armored-autogroup-14-billion Spectrum Brands Holdings to Acquire Armored AutoGroup for $1.4 Billion] on spectrumbrands.com. 28 Apr 2015
14. [https://www.reuters.com/article/business/energizer-adds-armor-all-stp-brands-in-125-billion-spectrum-deal-idUSKCN1NK22V/ Energizer adds Armor All, STP brands in $1.25 billion] on Reuters.com. 15 Nov 2018
15. "Richard Petty".
16. (August 9, 2012). "STP Becomes Title Sponsor".
17. (February 21, 2013). "Iconic Motorsports Brands STP and Martinsville Speedway Join Forces".