Mister Car Wash is a leading operator of car washes in the United States.

www.mistercarwash.com

Investment

C$60 million

Fund

ONCAP II

Period

April 2007 – August 2014

ONCAP Team

Michael Lay
Evan Hershberg

Mister Car Wash image

Transaction Summary

ONCAP acquired majority interest in Mister Car Wash in April 2007.

Business Description

Based in Tucson, Arizona, Mister Car Wash was a leading car wash operator with 65 car washes and 24 lube centers in Texas, Minnesota, Florida, Washington, Iowa, Idaho and Alabama. In addition to car washes and lube services, many of the company’s full-service units offered gasoline sales, windshield repair services and a selection of automotive-related merchandise.

Accomplishment and Outcome

ONCAP leveraged the company’s current infrastructure and operating system to build a larger, more diversified car care service business through innovative expansion of existing products and services offerings as well as add-on acquisitions. Additionally, the company was a leader in the industry with several attractive investment attributes, including: (i) protected market position due to its sophisticated operating process, strong brand recognition and existing permits; (ii) strong and stable cash-flow generation with solid EBITDA margins, negative working capital requirements and low maintenance capital expenditures; (iii) a proprietary operating system that results in higher throughput and higher margins than its competitors; and (iv) significant organic and acquisition growth opportunities through providing additional services and identifying strategic acquisitions in target geographies.

ONCAP helped to transform Mister Car Wash from a small regional operator with geographic concentration in Houston into a market leader with over 180 locations operating in 14 states and generating more than $40 million of EBITDA. In August 2014, Leonard Green and Partners purchased the company, generating a total of $458 million in realized proceeds, which represented a 7.6x gross multiple of capital invested and a 34.6% gross IRR over the seven-year investment period.