Mister Car Wash to be taken private by Leonard Green for $7 per share
Leveraged buyout values car wash operator at $3.1 billion enterprise value, 29% premium to 90-day VWAP
Mister Car Wash agreed to be taken private by Leonard Green & Partners in an all-cash transaction valued at $3.1 billion, sending shares surging 15.3% as investors welcomed the leveraged buyout at a substantial premium.
The private equity firm, which has been a strategic partner of the car wash operator since 2014, will acquire all outstanding shares it doesn't already own for $7.00 per share. The deal represents a 29% premium to the volume-weighted average price of Mister Car Wash shares over the 90 days preceding the announcement. Leonard Green currently holds approximately 67% of Mister Car Wash's outstanding common stock, meaning the transaction primarily affects minority shareholders.
The stock rally pushed shares to $6.85, just below the offer price, reflecting market expectations that the deal will close. Mister Car Wash's board of directors, including a special committee of independent directors, unanimously approved the transaction and recommended that shareholders tender their shares.
The acquisition comes as Mister Car Wash reported solid fourth-quarter results, with net revenues increasing 4% to $261.2 million and adjusted net income per diluted share reaching $0.11, exceeding analyst estimates of $0.10. Comparable-store sales grew 1.6% during the quarter, while the company's Unlimited Wash Club memberships surged 7% year-over-year to reach approximately 2.3 million members.
John Lai, chairperson and chief executive officer of Mister Car Wash, said the move to private ownership will enable accelerated expansion. "Taking the company private will allow for accelerated growth through bolder investments in stores, personnel, and technologies," Lai stated in the earnings announcement.
The company opened 16 new greenfield locations and acquired five additional sites during the quarter, bringing its total network to 548 car wash locations as of December 31, 2025. For the full year 2025, Mister Car Wash surpassed $1 billion in revenue for the first time in its history, a milestone Lai attributed to "the consistency of our operating model, the strength of our customer value proposition, and the outstanding execution of our teams."
The transaction is expected to close in the first half of 2026, subject to regulatory approvals and customary closing conditions. Upon completion, Mister Car Wash's common stock will be delisted from Nasdaq and the company will operate as a privately held entity.
In light of the merger announcement, Mister Car Wash canceled its previously scheduled fourth-quarter and full-year 2025 earnings conference call that had been set for the same day as the acquisition announcement.
Leonard Green & Partners, founded in 1977, has extensive experience in consumer services investments and has owned a stake in Mister Car Wash for over a decade. The private equity firm's acquisition strategy typically focuses on companies with strong market positions and predictable cash flows—characteristics that align with Mister Car Wash's subscription-based revenue model, which derives 79% of wash sales from recurring Unlimited Wash Club memberships.
The offer price of $7.00 per share is below the 52-week high of $8.60 but represents a significant premium to recent trading levels. Prior to the announcement, shares had been trading around $6.01, giving the company a market capitalization of approximately $1.96 billion. Analysts had previously set an average price target of $7.47, with 11 analysts rating the stock a buy or strong buy compared to five holds and one sell, according to market data.