Atlantic Street Capital (a private equity firm that invests in lower middle market companies through an operationally intensive strategy) announced that it has made an additional $70 million investment to further support the operating strategy, member experience, leadership team, and wash quality of its portfolio company Zips Car Wash.
Serving over 270 locations in 20+ states over the last 20 years, most of Zips’ growth story has occurred over the last eight years through strategic acquisition, development, and member growth.
Atlantic Street had initially invested in Zips in 2020 and in 2022 increased its investment by acquiring additional equity from founding shareholders through a continuation fund. And since 2020, the company has expanded to new locations, substantially upgraded equipment, simplified monthly membership offerings, improved wash quality, and engaged technology to deliver the best consumer experience.
KEY QUOTE:
“Express-only car wash chains are a great place to invest, yet face challenging consumer trends that need to be addressed by Zips and the industry at large. This capital is critical for Zips’ efforts to think beyond existing industry strategies to accelerate growth, define membership experience and capture retail attention.”
- ASC Managing Partner, Andy Wilkins
