Founded in 2016, WhiteWater Express Car Wash has rapidly grown from a single car wash location to over 60 locations spanning Texas, Oklahoma, Ohio, Kentucky, and Michigan. This impressive growth is attributed to a strategic “land and expand” approach, which involves acquiring existing car washes to enter new markets and then developing new, greenfield sites to increase market presence. This dual strategy has allowed WhiteWater to quickly establish a strong foothold in key geographic areas.
Steve Mathis, co-founder and CEO of WhiteWater Express Car Wash, expressed enthusiasm about the partnership, stating, “We are excited to partner with Freeman Spogli as WhiteWater continues to execute on its multi-pronged, multi-regional growth strategy.” He highlighted Freeman Spogli’s expertise in building consumer brands and scaling multi-unit businesses as invaluable assets that will support WhiteWater’s ambitions to expand in existing markets and venture into new ones. Mathis also emphasized the continued commitment to customers, employees, and communities, now strengthened by the collaboration with Freeman Spogli. SkyKnight Capital, who initially invested in WhiteWater in 2018, will also remain a significant investor, ensuring continuity and ongoing support for the company’s vision.
Chris Johnson, Partner at Freeman Spogli, echoed this positive sentiment, recognizing WhiteWater Express Car Wash as a “best-in-class platform” with substantial expansion potential. He noted the fragmented nature of the express car wash market and the opportunities it presents for growth through both acquisitions and new developments. Freeman Spogli’s partnership underscores their belief in WhiteWater’s experienced management team and their capacity to execute a long-term growth strategy effectively.
Jordan Hathaway, also a Partner at Freeman Spogli, further emphasized the WhiteWater team’s dedication to excellence and passion for the car wash industry. This dedication, combined with a strong brand identity, has resulted in industry-leading unit economics and operating metrics, showcasing the operational strength of WhiteWater Express Car Wash.
SkyKnight Capital, reaffirming their continued investment, praised WhiteWater’s exceptional customer service and leadership culture as key differentiators in the market. Jordan Milich, Partner at SkyKnight Capital, noted the company’s remarkable growth over the past three years, expanding tenfold to over 60 locations. He expressed confidence in WhiteWater’s ability to maintain its dynamic growth trajectory and solidify its position as a leading express car wash platform.
The advisors for this transaction included Harris Williams for WhiteWater and SkyKnight Capital, and J.P. Morgan Securities LLC for Freeman Spogli. Legal counsel was provided by Holland and Knight for WhiteWater and SkyKnight Capital, and Gibson, Dunn & Crutcher for Freeman Spogli. The debt financing to facilitate the acquisition was led by Crescent Capital, with participation from Goldman Sachs Asset Management and New Mountain Finance Corporation.
About WhiteWater Express Car Wash
WhiteWater Express Car Wash was established in 2016 and is headquartered in Houston, Texas. The company specializes in operating express exterior car washes, a highly efficient and automated car wash model. A significant portion of WhiteWater’s revenue is generated through recurring monthly membership programs, highlighting customer loyalty and satisfaction. With a proven growth strategy through acquisitions and greenfield developments, WhiteWater Express Car Wash aims to exceed 100 locations by the end of 2022, further cementing its footprint in the express car wash sector. The company operates under a unified brand and point of sale system, ensuring consistent customer experience across all locations. For more detailed information, visit www.whitewatercw.com.
About Freeman Spogli & Co.
Freeman Spogli & Co. is a private equity firm with a focused approach on investing in consumer and distribution companies within the United States. Founded in 1983, the firm has a long history of partnering with management teams to build successful businesses. With over $5.3 billion invested in 67 portfolio companies and an aggregate transaction value exceeding $25 billion, Freeman Spogli brings substantial financial resources and operational expertise to its partnerships. The firm is currently investing from FS Equity Partners VIII, L.P. and has offices in Los Angeles and New York. Further details can be found at www.freemanspogli.com.
About SkyKnight Capital
SkyKnight Capital, founded in 2015, is a private equity firm managing over $2 billion in capital. The firm focuses on long-term investments in high-quality businesses within stable growth sectors, collaborating with exceptional management teams. SkyKnight targets industry-defining businesses in sectors such as healthcare, financial services, and tech-enabled services. More information is available at www.skyknightcapital.com.
