By Jim Utter
Director of Journalism
One of the largest car wash companies in the United States is exploring a sale, according to Reuters, a news agency based in London.
In a report published Wednesday, Reuters cited anonymous sources that claim the owners of Spotless Brands are exploring a sale that could value the car wash operator at nearly $3 billion including debt.
Spotless operates around 200 locations across 10 states and Washington, D.C., with its brands including Bluebird Express, Cobblestone Auto Spa, Epic Shine, Flagship Carwash, Okie Express Auto Wash, and Ultimate Shine Car Wash.
Investment firm Access Holdings established Spotless in 2020 and made a further infusion of capital in 2023 as part of a $600 million fundraising round in which Wafra Inc, an investment firm backed by Kuwait’s public pension fund, acquired a minority stake in the company.
The Reuters report said Spotless is working with investment bank William Blair on the sales process but cautioned that no sale was guaranteed.
Spotless, ranked among the top 10 car wash companies in the U.S. by Car Wash Advisory, generates around $200 million of annual earnings before interest, taxes, depreciation and amortization (EBITDA).
The fragmented nature of the car wash industry offers the potential of profitable consolidation prospects.
According to a study by Houlihan Lokey, approximately 60,000 car washes exist in the U.S., and more than 80 percent of those are operated by a less-than-five-unit operator.
The consolidation moves coincide with private equity’s growing interest in the industry, similar to KKR’s $850 million entry into Quick Quack Car Wash last year.
Given the industry’s fragmented nature, private equity firms can grow portfolio companies quickly through the acquisition of smaller car wash operators.
According to Finimize, a financial news and education platform, said mounting investments in car wash firms reflect a larger economic strategy through consolidation, akin to approaches in other retail and service sectors.
For global businesses, especially in fragmented markets, this indicates a push toward efficient expansions and solid market captures, potentially triggering similar strategies in industries aiming to optimize returns in specialized domains.
