Leonard Green & Partners (LGP) has agreed to buy out the remaining public shareholders of Mister Car Wash, the Tucson, Ariz.-based operator of roughly 550 car wash locations and the largest car wash subscription program in North America, at $7 per share in cash—a 29% premium to the stock's 90-day volume-weighted average price through Feb. 17, the last day before the deal was announced.
The deal values the company at $3.1 billion. LGP, which first invested in Mister Car Wash in 2014 and currently holds about 67% of its outstanding shares, plans to delist the company from NASDAQ once the transaction closes, which is expected in the first half of 2026.
CEO John Lai said going private would give the company more room to invest in its stores, workforce and technology. "Taking our company private will help us accelerate our growth by investing more boldly in our stores, our people, and our technologies to capture the multiple opportunities ahead," he said, adding that the move brings the company closer to its goal of tripling its footprint.
A special committee of independent Mister Car Wash board members unanimously approved and recommended the transaction, with LGP-affiliated directors recusing themselves from the full board vote that followed. The special committee retained its own financial and legal advisors.
Founded in 1989 and based in Los Angeles, LGP manages more than $75 billion in assets. The firm focuses on services, distribution and industrials, and has been active across various fronts recently—acquiring NEFCO, a distributor of products for professional contractors; exiting its investment in the commercial HVAC and building automation services company Service Logic; and carving out the Topgolf and Toptracer businesses from Topgolf Callaway Brands for $1.1 billion.
BofA Securities and Centerview Partners are serving as financial advisors to the special committee, with Morris, Nichols, Arsht & Tunnell as its legal counsel. Latham & Watkins is acting as legal counsel to Mister Car Wash, and Simpson Thacher & Bartlett is representing LGP.