TDR sells ICWG to Roark Capital

The deal brings to an end a three-year holding period for the GP and is an exit for TDR Capital III, a €2.1bn vehicle that held its final close in April 2014.

Financial details of the transaction remain undisclosed, though ICWG generated adjusted EBITDA of £50m in 2016, according to publicly available documents.

Under the GP's tenure, the business expanded into the US market, acquiring 110 locations as part of a consolidation play. It has also invested in the refurbishment of many existing facilities, the acquisition of 50 new sites across its existing geographies and further international expansion in Australia and China.

Under its new owners, ICWG will continue to focus on international expansion, including increasing its number of locations in the US.

The deal is expected to complete in Q4 2017.

Previous funding
ICWG (then known as IMO Car Wash Group) first received backing from institutionally backed fund managers in 1999, when Bridgepoint led a consortium of buyers including Phoenix Equity Partners and PAI Partners in a £35m buyout for the company.

In January 2004, JP Morgan acquired the business from Bridgepoint in a deal valued at £350m.

Two years later, JP Morgan sold ICWG to Carlyle Group, which drew capital from Carlyle Europe Partners II.

TDR then acquired the company in June 2014. The company rebranded as ICWG in March 2017.

Company
Founded in Germany in 1965 and now headquartered in High Wycombe, Buckinghamshire, ICWG is a conveyor car wash operator. The business operates under the Car Wash USA and Supersonic brands in the US. It has around 900 sites across 14 countries, including 320 in Germany, 260 in the UK and 110 in the US. The remaining sites are located across Europe and Australia.

The business generated a turnover of £164m and adjusted EBITDA of £50m in 2016, up from £122m and £34m respectively in 2015.

People
TDR Capital – Jonathan Rosen (partner).
Roark Capital – Ezra Field (senior managing director, chief investment officer); Matt Kaelin (managing director).
International Car Wash Group – Mike Smith (executive chairperson).

Advisers
Company – Goldman Sachs (corporate finance); Allen & Overy (legal).

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• Secondary buyout