Atlantic Street Capital has made an investment in Zips Car Wash in partnership with the company’s founder.
Zips Car Wash is one of the largest ride-thru car wash operators in the U.S. with 185 locations in 17 states across the South, Southeast, and Mid-Atlantic. Little Rock, Arkansas-based Zips was founded in 2003 by CEO Brett Overman and has more than 1,400 employees. Mr. Overman remains the majority owner of the business in partnership with Atlantic Street.
“We couldn’t be more excited to partner with Atlantic Street’s investment and operations teams,” said Mr. Overman. “Atlantic Street has considerable experience growing multi-unit, subscription-based retail platforms and driving well-run consolidations. This strategic capital will allow us to attract and retain the best talent in the industry, as well as offer leading express car wash operators a chance to be part of the Zips family.”
“Brett has built a tremendous brand and corporate culture focused on delivering consistent, high-speed customer service at an attractive price point,” said Andy Wilkins, a managing partner at Atlantic Street. “Zips is a strong national platform that we look forward to helping continue to build with Brett and his team.”
Atlantic Street invests from $15 million to $40 million in middle-market companies with EBITDA from $4 million to $15 million. The firm invests across a range of sectors but has a specific interest in healthcare, multi-unit retail, business services, and consumer products and services.
In September 2019, Atlantic Street held a final closing of Atlantic Street Capital IV LP at its hard cap with $500 million of capital commitments. “Atlantic Street has been actively seeking the right opportunity in the express car wash market for several years,” said Phil Druce, a partner at Atlantic Street. “We’re thrilled to have found a great partner in Brett and platform in Zips as we look to build the brand to over 500 locations.”
Atlantic Street was founded in September 2006 by Peter Shabecoff and is based in Stamford, Connecticut with an additional office in West Palm Beach, Florida.
BlackArch Partners was the financial advisor to Zips Car Wash on this transaction.
Private Equity Professional | May 14, 2020