Mister Car Wash has officially stopped trading on the Nasdaq following the completion of a $3.1 billion take-private acquisition by Leonard Green & Partners. The deal, which valued the car-wash operator at an enterprise value including debt, saw public shareholders receive $7.00 per share in cash. The stock last traded at $7.10 on May 19 before being halted.
Delisting and Index Removal
The company has been removed from the S&P SmallCap 600 index, replaced by F&G Annuities & Life as of the market open on May 19. This move forced index funds tracking the benchmark to rebalance their portfolios accordingly. Mister Car Wash requested the suspension of trading and the initiation of delisting proceedings after the close of business on May 18.
Deal Background
The acquisition was not unexpected. In February, Mister Car Wash announced that Leonard Green, which already owned approximately 67% of the company’s common stock, would purchase the remaining shares at $7.00 each. The company described this price as a 29% premium over the 90-day volume-weighted average price leading up to February 17, a metric that combines price and volume over that period.
Recent Financial Performance
Prior to the deal closing, Mister Car Wash reported its first-quarter results on April 29. Revenue rose 6% year-over-year to $277.9 million, with comparable-store sales increasing 3.9%. The company’s Unlimited Wash Club memberships reached approximately 2.5 million. As of March 31, the company operated 549 car washes across 21 states, a number that grew to about 550 locations by the time of the closing announcement.
Market Context
With Mister Car Wash now private, the comparable set of publicly traded car-wash companies has narrowed. Driven Brands, an auto-services company, remains publicly traded and last changed hands at $12.68, giving it a market capitalization of roughly $2.09 billion. Driven Brands has been restructuring its business after selling its international car-wash unit and now focuses on its Take 5, Franchise Brands, and Auto Glass Now segments.
Post-Deal Risks
The deal does not eliminate operating risks but merely removes them from public view. An SEC filing reveals that Mister Car Wash Holdings amended its credit agreement to include a $900 million senior secured first-lien incremental term loan, a debt instrument backed by collateral and senior to most other claims. Higher leverage, weaker consumer spending, or softening membership trends could still impact the private company even after public shareholders have exited.
What Remains
For the market, the MCW ticker has been cleared, and the remaining tasks involve processing cash payments, completing the delisting, and addressing any potential appraisal rights. Shareholders who did not support the merger may seek a court-determined value for their shares in Delaware.
