Atlantic Street Capital, which backs lower middle and middle market companies, has made a strategic growth-focused investment into Zips Express Wash.
Zips Express was founded in 2003 and offers a ride-thru tunnel car wash service, which are available in 185 locations spanning 17 US states.
Following the close of the deal, the company founder, Brett Overman will remain the majority owner of the company.
Atlantic Street tapped its fourth fund for the deal, which closed on $500m in 2019.
The investors normally deploys between $15m and $40m per deal, supporting North American companies with EBITDA in the range of $4m to $15m.
With the fresh funds, the car wash company will look to hire more staff and “offer leading express car wash operators a chance to be part of the Zips family.”
Atlantic Street Capital partner Phil Druce said, “Atlantic Street has been actively seeking the right opportunity in the express car wash market for several years. We’re thrilled to have found a great partner in Brett and platform in Zips as we look to build the brand to over 500 locations.”
Middle market investment bank BlackArch Partners served as the exclusive financial advisor to Zips Express Wash.
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