Mister Car Wash Inc. has officially exited the public markets after private equity firm Leonard Green & Partners completed its $3.1 billion acquisition of the company. The transaction, which closed this week, saw shareholders receive $7.00 per share in cash, marking the end of the car-wash chain's tenure as a publicly traded entity.
The company's common stock has ceased trading on the Nasdaq, and the exchange filed a Form 25 on May 19 to formally delist the shares. This move follows the completion of the take-private deal, which was initially announced in February. As part of the process, S&P Dow Jones Indices replaced Mister Car Wash with F&G Annuities & Life in the S&P SmallCap 600 index, effective before trading opened on May 19.
Leonard Green, which already owned approximately 67% of Mister Car Wash shares prior to the deal, paid a 29% premium to the 90-day volume-weighted average price (VWAP) to acquire the remaining stake. The $7.00 per share offer was approved by shareholders and represented a significant premium to recent trading levels.
Mister Car Wash, headquartered in Tucson, Arizona, operates 549 locations across the United States. In its first-quarter results released on April 29, the company reported revenue of $277.9 million, a 6% increase year-over-year. Comparable-store sales rose 3.9%, and its Unlimited Wash Club membership reached approximately 2.5 million members.
CEO John Lai stated that going private provides the company with greater flexibility to execute its long-term growth strategy without the scrutiny of public markets. The car-wash industry has seen increasing interest from private equity firms, with KKR making a minority investment in Quick Quack in 2024, and Mister Car Wash and Driven Brands going public in 2021.
For investors who held shares at the time of the deal, the process is now largely complete. However, shareholders who properly demanded appraisal rights—a legal mechanism to seek a court-determined value for their shares—are not automatically entitled to the $7.00 per share payment. Those who lose or withdraw their appraisal rights will be deemed to have exchanged their shares for $7.00 without interest.
The delisting and buyout mark the end of Mister Car Wash's journey as a public company, which began with its IPO in 2021. The company, which operates under the Mister Car Wash brand, is one of the largest car-wash chains in the U.S., with a focus on subscription-based services.
Looking ahead, the company's performance will no longer be subject to quarterly earnings reports or market fluctuations. Instead, Leonard Green will oversee its operations as a private entity, potentially pursuing further expansion or operational improvements.
