Mister Car Wash Completes Acquisition with Total Enterprise Value of $3.1B
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Mister Car Wash announced the successful completion of its acquisition by investment funds managed by Leonard Green & Partners, L.P. in an all-cash transaction which implies a total enterprise value of the company of $3.1B. "We are excited for the next phase of growth and going private gives us greater flexibility to continue investing behind providing a superior customer experience," said John Lai, Chairman and CEO of Mister Car Wash. "We couldn't be more excited about the opportunity to partner with Leonard Green during this next phase. They have been a great partner since 2014 and understand the business and industry deeply." As a result of the transaction, members of management rolled over some of their ownership of the company and LGP acquired all of the other outstanding shares of the company's common stock that were not already owned by LGP's affiliates for $7.00 per share in cash. Mister Car Wash's common stock has ceased trading and will be delisted from Nasdaq.
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Analyst Views on MCW
Wall Street analysts forecast MCW stock price to fall
11 Analyst Rating
5 Buy
4 Hold
2 Sell
Moderate Buy
Current: 7.100
Low
5.25
Averages
6.80
High
9.00
Current: 7.100
Low
5.25
Averages
6.80
High
9.00
About MCW
Mister Car Wash, Inc. is a car wash company. The Company is engaged in offering express exterior cleaning services. Its car wash locations consist of two formats: Express Exterior Locations and Interior Cleaning Locations. All locations offer express exterior wash packages and have exterior-only lanes. Express Exterior Locations offer self-drive exterior cleaning services and include free vacuums available for customer use. Interior Cleaning Locations offer exterior and interior cleaning services, including vacuuming by its team members. In addition, with over 2.1 million members, it offers a monthly car wash subscription program, Unlimited Wash Club (UWC), as a flexible, quick and convenient option for customers to keep their cars clean. It serves a diverse mix of customers, including individual retail customers and UWC members, which are comprised of both retail and corporate customers. It operates in approximately 525 locations in 21 states.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Mister Car Wash Successfully Acquired by Leonard Green & Partners
- Acquisition Completed: Mister Car Wash has successfully completed its acquisition by investment funds managed by Leonard Green & Partners in an all-cash transaction, implying a total enterprise value of $3.1 billion, marking a new phase of growth for the company.
- Management Ownership: As part of the transaction, members of management rolled over some of their ownership, while LGP acquired all other outstanding shares of the company's common stock for $7.00 per share in cash, reflecting confidence in the company's future.
- Delisting Impact: Mister Car Wash's common stock has ceased trading and will be delisted from Nasdaq, a move that will provide the company with greater flexibility to invest post-privatization.
- Advisory Team: BofA Securities and Centerview Partners acted as financial advisors, while Morris, Nichols, Arsht & Tunnell served as legal counsel, ensuring the smooth execution of the transaction and protecting shareholder interests.
See More
Mister Car Wash Completes Acquisition by Leonard Green & Partners
- Acquisition Completed: Mister Car Wash announced the successful completion of its all-cash acquisition by investment funds managed by Leonard Green & Partners, with a total enterprise value of $3.1 billion, marking a new phase of growth for the company.
- Management Roll-Over: As part of the transaction, some members of management rolled over their ownership, while LGP acquired all other outstanding shares of the company's common stock at $7.00 per share in cash, demonstrating confidence in the company's future.
- Delisting Impact: Mister Car Wash's common stock has ceased trading and will be delisted from Nasdaq, a move that will provide the company with greater flexibility to continue investing in enhancing customer experience post-privatization.
- Advisory Team: BofA Securities and Centerview Partners acted as financial advisors, while Morris, Nichols, Arsht & Tunnell served as legal counsel, ensuring a smooth transaction process and reflecting the professional support during the acquisition.
See More
Investigation into Mister Car Wash Shareholder Breaches
- Acquisition Price Controversy: Mister Car Wash has agreed to be acquired by LGP for $7 per share, a price that may be deemed unfair to shareholders, highlighting potential conflicts of interest between the board and the controlling stockholder, thus raising significant governance concerns.
- Controlling Shareholder Influence: With LGP owning over 66% of Mister Car Wash, it wields decisive voting power in major transactions, which may lead to prioritizing its own interests over public shareholders, increasing potential legal risks associated with the deal.
- Special Committee Independence Issues: BFA Law's investigation has identified potential deficiencies in the independence of the special committee members negotiating the transaction, which could undermine the fairness of the deal terms and raise further questions about the management's sales process.
- Legal Options and Support: Current shareholders are encouraged to submit their information for legal support, with BFA Law offering services on a contingency basis, emphasizing their commitment to protecting shareholder rights.
See More
Investigation into Multiple Corporate Mergers
- TruBridge Acquisition: TruBridge, Inc. is under investigation regarding its sale to Inventurus Knowledge Solutions, Inc., with shareholders expected to receive $26.25 per share in cash, indicating a strong market expectation for this transaction's positive impact on shareholder value.
- UniFirst Transaction Details: UniFirst Corporation is set to be acquired by Cintas Corporation, with shareholders entitled to $155.00 in cash and 0.7720 shares of Cintas stock per UniFirst share, which not only enhances UniFirst's market valuation but also provides Cintas with an opportunity to expand its market share.
- Mister Car Wash Acquisition: Mister Car Wash, Inc. is being sold to MCW Parent, LP, with shareholders receiving $7.00 per share in cash, reflecting a trend of consolidation in the car wash industry that may influence future competitive dynamics.
- Barinthus Merger: Barinthus Biotherapeutics plc is merging with Clywedog Therapeutics, Inc., where Barinthus shareholders will receive one share of the new combined company for each share owned, while Clywedog shareholders will receive 4.358932 shares, potentially strengthening both companies' competitive positions in the biotherapeutics sector.
See More
Mister Car Wash Reports Strong Q1 Earnings
- Earnings Per Share Growth: Mister Car Wash reported a non-GAAP EPS of $0.13 for Q1, indicating a steady improvement in profitability and reflecting strong performance in a competitive car wash market.
- Strong Revenue Performance: The company generated $277.9 million in revenue for the first quarter, showcasing effective business models and sustained market demand, further solidifying its market position.
- Adjusted EBITDA Increase: Adjusted EBITDA rose from $85.6 million to $96.7 million, a 13% increase, which not only enhances profitability but also provides funding support for future investments and expansions.
- Positive Market Reaction: Despite market misunderstandings regarding Mister Car Wash's performance, the company demonstrates potential in the car wash industry through continuous earnings growth and strategic adjustments, likely attracting more investor interest.
See More
Mister Car Wash Under Investigation for Board Conduct
- Acquisition Investigation: Bleichmar Fonti & Auld LLP is investigating the board of directors of Mister Car Wash and its controlling stockholder LGP for potential breaches of fiduciary duties in connection with the pending take-private sale at $7 per share, which may represent an unfair price for shareholders.
- Controlling Shareholder Influence: LGP, owning over 66% of Mister Car Wash, can unilaterally approve the transaction, incentivizing it to execute the deal at the lowest possible price, potentially harming the interests of minority shareholders.
- Independence Concerns: The investigation has identified potential deficiencies in the independence of the special committee members negotiating the transaction terms, raising questions about the fairness of the deal, while BFA assesses whether management adequately considered alternative buyers.
- Legal Options for Shareholders: Current shareholders are encouraged to submit their information to explore legal options, with BFA offering representation on a contingency fee basis, emphasizing its commitment to protecting shareholder rights.
See More
Mister Car Wash Successfully Acquired by Leonard Green & Partners
- Acquisition Completed: Mister Car Wash has successfully completed its acquisition by investment funds managed by Leonard Green & Partners in an all-cash transaction, implying a total enterprise value of $3.1 billion, marking a new phase of growth for the company.
- Management Ownership: As part of the transaction, members of management rolled over some of their ownership, while LGP acquired all other outstanding shares of the company's common stock for $7.00 per share in cash, reflecting confidence in the company's future.
- Delisting Impact: Mister Car Wash's common stock has ceased trading and will be delisted from Nasdaq, a move that will provide the company with greater flexibility to invest post-privatization.
- Advisory Team: BofA Securities and Centerview Partners acted as financial advisors, while Morris, Nichols, Arsht & Tunnell served as legal counsel, ensuring the smooth execution of the transaction and protecting shareholder interests.
See More
Mister Car Wash Completes Acquisition by Leonard Green & Partners
- Acquisition Completed: Mister Car Wash announced the successful completion of its all-cash acquisition by investment funds managed by Leonard Green & Partners, with a total enterprise value of $3.1 billion, marking a new phase of growth for the company.
- Management Roll-Over: As part of the transaction, some members of management rolled over their ownership, while LGP acquired all other outstanding shares of the company's common stock at $7.00 per share in cash, demonstrating confidence in the company's future.
- Delisting Impact: Mister Car Wash's common stock has ceased trading and will be delisted from Nasdaq, a move that will provide the company with greater flexibility to continue investing in enhancing customer experience post-privatization.
- Advisory Team: BofA Securities and Centerview Partners acted as financial advisors, while Morris, Nichols, Arsht & Tunnell served as legal counsel, ensuring a smooth transaction process and reflecting the professional support during the acquisition.
See More
Investigation into Mister Car Wash Shareholder Breaches
- Acquisition Price Controversy: Mister Car Wash has agreed to be acquired by LGP for $7 per share, a price that may be deemed unfair to shareholders, highlighting potential conflicts of interest between the board and the controlling stockholder, thus raising significant governance concerns.
- Controlling Shareholder Influence: With LGP owning over 66% of Mister Car Wash, it wields decisive voting power in major transactions, which may lead to prioritizing its own interests over public shareholders, increasing potential legal risks associated with the deal.
- Special Committee Independence Issues: BFA Law's investigation has identified potential deficiencies in the independence of the special committee members negotiating the transaction, which could undermine the fairness of the deal terms and raise further questions about the management's sales process.
- Legal Options and Support: Current shareholders are encouraged to submit their information for legal support, with BFA Law offering services on a contingency basis, emphasizing their commitment to protecting shareholder rights.
See More
Investigation into Multiple Corporate Mergers
- TruBridge Acquisition: TruBridge, Inc. is under investigation regarding its sale to Inventurus Knowledge Solutions, Inc., with shareholders expected to receive $26.25 per share in cash, indicating a strong market expectation for this transaction's positive impact on shareholder value.
- UniFirst Transaction Details: UniFirst Corporation is set to be acquired by Cintas Corporation, with shareholders entitled to $155.00 in cash and 0.7720 shares of Cintas stock per UniFirst share, which not only enhances UniFirst's market valuation but also provides Cintas with an opportunity to expand its market share.
- Mister Car Wash Acquisition: Mister Car Wash, Inc. is being sold to MCW Parent, LP, with shareholders receiving $7.00 per share in cash, reflecting a trend of consolidation in the car wash industry that may influence future competitive dynamics.
- Barinthus Merger: Barinthus Biotherapeutics plc is merging with Clywedog Therapeutics, Inc., where Barinthus shareholders will receive one share of the new combined company for each share owned, while Clywedog shareholders will receive 4.358932 shares, potentially strengthening both companies' competitive positions in the biotherapeutics sector.
See More
Mister Car Wash Reports Strong Q1 Earnings
- Earnings Per Share Growth: Mister Car Wash reported a non-GAAP EPS of $0.13 for Q1, indicating a steady improvement in profitability and reflecting strong performance in a competitive car wash market.
- Strong Revenue Performance: The company generated $277.9 million in revenue for the first quarter, showcasing effective business models and sustained market demand, further solidifying its market position.
- Adjusted EBITDA Increase: Adjusted EBITDA rose from $85.6 million to $96.7 million, a 13% increase, which not only enhances profitability but also provides funding support for future investments and expansions.
- Positive Market Reaction: Despite market misunderstandings regarding Mister Car Wash's performance, the company demonstrates potential in the car wash industry through continuous earnings growth and strategic adjustments, likely attracting more investor interest.
See More
Mister Car Wash Under Investigation for Board Conduct
- Acquisition Investigation: Bleichmar Fonti & Auld LLP is investigating the board of directors of Mister Car Wash and its controlling stockholder LGP for potential breaches of fiduciary duties in connection with the pending take-private sale at $7 per share, which may represent an unfair price for shareholders.
- Controlling Shareholder Influence: LGP, owning over 66% of Mister Car Wash, can unilaterally approve the transaction, incentivizing it to execute the deal at the lowest possible price, potentially harming the interests of minority shareholders.
- Independence Concerns: The investigation has identified potential deficiencies in the independence of the special committee members negotiating the transaction terms, raising questions about the fairness of the deal, while BFA assesses whether management adequately considered alternative buyers.
- Legal Options for Shareholders: Current shareholders are encouraged to submit their information to explore legal options, with BFA offering representation on a contingency fee basis, emphasizing its commitment to protecting shareholder rights.
See More
