By Jim Utter
Director of Journalism
El Car Wash is continuing its rapid expansion – particularly in the state of Florida – with the acquisition of a total of nine car wash sites.
ECW announced on Tuesday it has acquired six ZIPS Car Wash locations in Orlando, Florida, and three SPIN Car Wash locations all located in Broward County, Florida.
The pickup of the six ZIPS sites is part of the fallout from ZIPS’ recent decision to voluntarily file for Chapter 11 bankruptcy protection.
In a statement, ECW put the nine-site purchase price at “over $50 million.”
“We are thrilled to welcome the ZIPS Orlando locations and the SPIN Car Wash Broward locations into the ECW family. These are excellent additions to our portfolio as we continue to expand further throughout Florida and deepen our presence in our core markets,” said Justin Landau, ECW’s co-founder and chief strategy officer.
With the newest acquisitions, El Car Wash will own 65 sites with more than 300,000 customers enrolled in membership programs across Florida and Michigan. ECW recently held a special celebration at its first Florida site (on Bird Road in Miami) in honor of passing 50 locations in the Sunshine State.
Vinny Carfora of Car Wash King acted as an advisor on the ZIPS transaction.
El Car Wash plans to invest significantly in upgrading its newly acquired sites, enhancing wash quality and elevating customer experience.
Additionally, ZIPS and SPIN locations will be integrated into ECW’s membership program, allowing both new and existing members access to all its locations.
Already this year, ECW has opened new Florida locations in Lake Nona, Merritt Island, Oakland Park, Lake Worth, and Hialeah Gardens, with plans to open 20 new stores by year’s end.
“We’re excited to bring our industry-leading operations to these locations and deliver an exceptional customer experience and premium member value through the best car wash network in Florida,” said Geoff Karas, co-founder and chief executive officer.
Last week, ZIPS Car Wash, with the support of its existing lenders and equity holders, filed voluntary Chapter 11 in U.S. Bankruptcy Court for the Northern District of Texas.
The move was not unexpected as multiple reports over the last month indicated the company was looking for rent concessions from some landlords as well as potentially selling off sites.
As part of the filing, ZIPS said it had agreed to the terms of a restructuring plan with a group of its existing private lenders and expects it will reduce its debt obligations by approximately $279 million. According to the court filing, ZIPS has $654 million of total funded debt.
ZIPS also said it hoped to secure $15 million of new capital to support the restructured business and “future strategic initiatives.”
With financial help from Warburg Pincus, a New York-based private equity firm that acquired the company in 2022, co-CEOs Justin Landau and Geoffrey Karas have rapidly expanded ECW into one of the fastest-growing private companies in the country.
SOURCE: El Car Wash
