Penfund Co-Invests in Mister Car Wash
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Penfund Co-Invests in Mister Car Wash

mister car wash nf3Penfund was a co-investor with Leonard Green & Partners on its acquisition in August of Car Wash Partners (DBA Mister Car Wash), the largest full-service car wash chain in the United States.  Penfund provided $15.1 million debt and equity to support the acquisition.

Mister Car Wash operates 134 car washes and 32 lube centers in 14 states across the country, making it the largest car wash and lube center chain in the United States.  Mister Car Wash is the most acquisitive company in the car wash industry having completed over 25 acquisitions representing over 70 stores since 2009.  The company has 4,800 employees and services more than 15 million vehicles annually.  Mister Car Wash was founded in 1996 and is headquartered in Tucson, AZ (www.mistercarwash.com).

Penfund specializes in providing junior capital to North American middle market companies.  The firm provides second lien, high yield and mezzanine debt, control and minority equity, as well as bridge facilities, standby lines, underwritten facilities and financial guarantees. Penfund is currently investing out of Penfund Capital Fund IV which has $460 million of committed capital. The firm was founded in 1979 and is based in Toronto (www.penfund.com).

Jeremy Thompson nf1“We are very happy to have been able to support Leonard Green in their acquisition of Mister Car Wash. We believe the acquisition will enable Mister Car Wash to continue its strong growth and maintain its industry leadership,” said Jeremy Thompson, a partner at Penfund.

Leonard Green & Partners invests in middle-market companies with market-leading franchises and defensible competitive positions, attractive growth prospects and proven management teams. The firm’s investments are in the form of traditional buyouts, going-private transactions, recapitalizations, growth capital investments, corporate carve-outs and selective public equity and debt positions. Sectors of interest include retail, distribution, healthcare, aerospace/defense and consumer/business services. Leonard Green & Partners was established in 1989 and manages approximately $15 billion of equity capital. The firm is located in Los Angeles, CA (www.leonardgreen.com).

“Mister Car Wash has built one of the most sophisticated operating platforms in the car wash industry and now, with the strength of Leonard Green’s backing, we’re perfectly positioned to grow at an even faster clip,” said John Lai, CEO of Mister Car Wash.

Prior to being acquired by Leonard Green and Penfund, Mister Car Wash had been a portfolio company of Onex Corporation, through its ONCAP II investment fund, which acquired the company in April 2007.  During its term of ownership, ONCAP grew the company from 39 locations to 134 today.

2014 PEPD • Private Equity’s Leading News Magazine • 10-3-14

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