car washes

MKH Capital Partners has hired Thomas Welter to lead Clean Streak Ventures, its express car wash platform company.

Orlando-headquartered Clean Streak was founded by MKH in November 2019 and operates ten locations in Florida. The company has closed three transactions in the past six months and plans to continue growing both organically and through add-on acquisitions.

Clean Streak brands include Top Dog Express Car Wash & Oil Change with four locations Orlando (acquired in November 2019); Blue Water Car Wash with three locations in Orlando (acquired in March 2020; and Clean Machine Car Wash with three locations in the Naples/Fort Myers metropolitan area (acquired in January 2020).

“Our team identified the express car wash space as an industry with attractive opportunities for consolidation and growth and created Clean Streak as the foundation for a national operator of high-quality car washes,” said Miguel Heras, a managing partner of MKH.

Prior to joining Clean Streak in February 2020, Mr. Welter was the chief operating officer of Minnesota-headquartered Lift Brands, a franchiser of gyms, yoga and kickboxing brands including Snap Fitness, 9Round, Yoga Fit, Steele Fitness and Fitness OnDemand.  Earlier, from 2010 to 2017, he was the vice president of franchising for Byrider, an Indiana-based franchiser of used-car dealerships. Mr. Welter has also worked at Yum! Brands!, 24 Hour Fitness, and Avis. He is a graduate of the University of Nebraska and played two seasons with the National Football League’s St. Louis Cardinals.

“We are thrilled to partner with Tom – who has an excellent track record in building membership-centered, multi-unit businesses – in order to scale Clean Streak in its existing markets and new MSAs,” said Annette Rodriguez, a managing partner at MKH.

Potential add-ons for Clean Streak include multi-unit express or flex-serve car washes that have revenues of at least $1.5 million per site and at least 85% of revenue from express services. For new markets, acquisitions should have a minimum of four locations, and single sites are considered in Clean Streak’s existing markets.

“Clean Streak’s growth strategy is focused on acquiring or partnering with strong multi-unit regional players in new markets and pursuing tuck-ins in its existing markets,” said Andres Bethencourt, a director at MKH.

MKH makes control and significant minority investments of $20 million to $300 million in companies that have EBITDA of $3 million to $30 million. MKH is headquartered in Miami, Florida with an additional office in Panama City, Panama.

Private Equity Professional | July 8, 2020

Palladin Consumer Retail Partners has acquired Splash Car Wash in partnership with CEO Mark Curtis, co-founder Chris Fisher, and partner Dan Petrelle.

Splash Car Wash is a regional operator of car washes with 18 locations in New York and Connecticut. The company’s facilities offer full service, hand wash, express, and self-service alternatives, as well as oil and lube services at certain locations.

Splash, founded in 1981 by Mark Curtis and Chris Fisher, has more than 500 employees and is based in Greenwich, CT (www.splashcarwashes.com).

“The Palladin team brings a wealth of experience growing consumer brands,” said Mr. Curtis. “Being able to work with them marks a critical next step in our growth strategy. Their expertise, support and leadership will provide creative insights and operational improvements that will be instrumental in becoming a major regional and national platform.”

“We are excited to partner with Mark and the entire Splash team,” said Mark Schwartz, CEO of Palladin. “They have built an excellent company and are well-respected in the industry. We are confident that, with additional capital and resources, we can work together to significantly expand the Splash organization.

Palladin Consumer Retail Partners invests from $10 million to $50 million of equity in retail and consumer products companies that have revenues of $50 million to $500 million and EBITDA of $5 million to $20 million. The firm was founded in 1998 and is based in Boston (www.pcrp.com).

Splash washes more than one million cars per year and was recently ranked by Professional Carwashing & Detailing magazine as the 17^th largest chain in the US (click HERE for the list).

“We have spent over a year researching the car wash industry and identified Splash as a leading regional carwash operator and the perfect anchor acquisition,” said Anders Petersen, Managing Director of Palladin. “The experience of the management team, familiarity managing different car wash models, and commitment to employees and customer service provide an excellent partnership for growth and development. We look forward to working with Mark and his team growing Splash both organically and through acquisitions.”

Goldman Sachs Specialty Lending Group provided debt financing for this transaction, as well as an unfunded acquisition line and revolving credit facility to support acquisitions and working capital needs.

© 2018 Private Equity Professional | November 7, 2018

Roark Capital Group has acquired International Car Wash Group from TDR Capital.

International Car Wash Group (ICWG) is the largest car wash operator in the world, washing more than 35 million cars every year through more than 900 locations in 14 countries across Europe, the United States, and Australia. ICWG operates under the IMO brand in Europe and in the Asia-Pacific region. In the US, ICWG operates under the brands Car Wash USA Express, Goo-Goo, Zippy’s, Car Wash Express, and Supersonic Car Wash.  The company was founded in 1965 and is headquartered west of London in High Wycombe, UK (www.icwg.com).

TDR Capital acquired ICWG in July 2014. ICWG was previously a portfolio company of The Carlyle Group but the firm lost control of the company in 2009 through a debt restructuring that led to the company being acquired by its creditors. Carlyle had acquired ICWG in February 2006 from JPMorgan’s private equity unit which in turn had acquired the company in December 2003.

TDR Capital is a UK-based private equity firm with over €5 billion of committed capital. The firm invests in medium-sized, European businesses. TDR Capital was founded in 2002 by Manjit Dale and Stephen Robertson and is headquartered in London (www.tdrcapital.com).

During the term of TDR’s ownership, the company began expanding into the highly-fragmented US car wash market. In August 2017, ICWG acquired Columbus, GA-based Goo-Goo Car Wash which operated 53 3-Minute Express Wash locations in seven states — Alabama, Florida, Georgia, Kentucky, Ohio, Tennessee and Texas. The bulk of the company’s operations are in Alabama, which has 15 car washes, and in Georgia, which has 14 outlets. Also during TDR’s ownership, ICWG opened over 50 new sites within its existing European geographies.

“ICWG’s quick conveyor car wash model provides high-quality washes at an affordable price point that is attractive to today’s consumers who demand convenience and value,” said Ezra Field, Senior Managing Director and Chief Investment Officer at Roark.

Roark Capital Group invests in franchised and multi-unit business models in the retail, restaurant, consumer and business services sectors. Since inception, Roark has invested in 61 franchise/multi-unit brands which collectively generate $25 billion in annual system revenues from 28,000 locations in 50 states and 78 countries.

Roark’s current brands include Anytime Fitness, Arby’s, Atkins Nutritionals, Batteries Plus Bulbs, CKE Restaurants (the owner of Carl’s Jr. and Hardee’s), Corner Bakery, Driven Brands (the owner of Maaco, Meineke, CARSTAR, 1-800-Radiator and Take 5 Oil Change), Drybar, FOCUS Brands (the owner of Auntie Anne’s Pretzels, Carvel Ice Cream, Cinnabon, McAlister’s Deli, Moe’s Southwest Grill, and Schlotzsky’s), Great Expressions Dental Centers, Il Fornaio, Jimmy John’s, Jim ‘N Nick’s, Massage Envy, Miller’s Ale House, Naf Grill, Orangetheory Fitness, Pet Retail Brands (the owner of Pet Supermarket and Pet Valu), Primrose Schools and Waxing the City.

“Roark brings a deep understanding of the consumer and an operational expertise that complements our business,” said Bill Derwin, CEO of ICWG. “We are delighted to be a part of the Roark family.”

Roark Capital Group is headquartered in Atlanta (www.roarkcapital.com).

© 2017 Private Equity Professional | October 6, 2017