Zips Car Wash

Founded in 2003 by Brett Overman, Zips Car Wash (“Zips”) is one of the largest and fastest-growing express-only car wash operator in the United States. Since its inception, both through acquisitions and greenfield developments, Zips has strategically evolved and scaled its platform to over 185 locations across 17 states. As an industry-leader in innovative offerings, the company pioneered the express format car wash subscription model, leading to a growing proportion of recurring revenue and customer stickiness. Headquartered in Little Rock, AR, Zips has over 1,400 employees.

has received a growth equity investment from

Car Wash Operator

Situation

BlackArch was retained by Zips to serve as its exclusive financial advisor.

BlackArch’s Customized Solution

BlackArch leveraged its end-market expertise and knowledge of subscription service business models to identify a “best fit” partner for Mr. Overman and the Zips shareholders. BlackArch navigated another founder-owned business through the identification of their goals and objectives, designing and executing a process to achieve those goals and then successfully supporting the team from start to finish. The investment by Atlantic Street Capital in Zips continues BlackArch’s extensive car wash transaction experience and business model knowledge that spans through every piece of the sector value chain.

Outcome

Zips Car Wash has received a growth-equity investment from Atlantic Street Capital. With the support of Atlantic Street Capital’s premier operating network and resources, Atlantic Street Capital will facilitate the expansion of Zips’ national platform and continue to build the Zips brand, both organically and through acquisitions. Mr. Overman, Zips’ founder and Chief Executive Officer, will maintain a substantial ownership stake in the business.

Industries:

Automotive Aftermarket, Consumer Products & Services

Location:

Little Rock, AR

Transaction type:

Sellside Advisory