ZIPS gets another money injection
Atlantic Street Capital (ASC) has just injected an additional $70 million into ZIPS Car Wash. According to a press release the money is meant to ‘further support the operating strategy, member experience, leadership team and wash quality.’
ASC is a private equity firm that invests in lower middle market companies through an operationally intensive strategy. The company has been investing in ZIPS 2020. They increased its investment by acquiring additional equity from founding shareholders through a continuation fund in 2022.
US based company ZIPS Car Wash has grown to one of the bigger players in the American carwash industry. They operate over 270 locations in more than 20 states. Most of ZIPS’ growth story has occurred over the last eight years through strategic acquisition, development and member growth.
“Express only car wash chains are a great place to invest, yet face challenging consumer trends that need to be addressed by ZIPS and the industry at large,” said ASC Managing Partner Andy Wilkins. “This capital is critical for ZIPS’ efforts to think beyond existing industry strategies to accelerate growth, define membership experience and capture retail attention.”
Since 2020, ZIPS has acquired new locations, substantially upgraded equipment, simplified monthly membership offerings and improved the overall wash quality.
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