Atlantic Street Capital (“ASC”), a private equity firm that invests in lower middle market companies to unlock equity value through an operationally intensive investment approach, has announced an agreement to increase its investment in its portfolio company, Zips Car Wash. The transaction allows ASC to acquire equity from founding shareholders and build upon an operating strategy that has already driven considerable growth. The transaction is expected to be completed in the second quarter.

Zips is a leading national car wash operator with over 200 locations under a single-brand concept. Atlantic Street Capital Fund IV initially invested in Zips in May 2020 and follow-on to this investment, successful organic and inorganic initiatives have increased EBITDA more than six-fold and grown total sites from 185 to 235 locations currently.

During ASC’s initial hold, Zips has developed into a top brand with advanced car wash technology and improved customer service. ASC installed a proven management team with a passion for driving growth, brand development and customer experience. Through development of its subscription-based models, Zips Unlimited Wash Club memberships today represent a majority of revenue and contribute to strong revenue stability. “We approach all of our investments as essential service providers,” said ASC managing partner, Andy Wilkins, “helping professionalize companies, driving organic growth, and building them into industry leaders. Zips is a powerful example of how the combined resources of Atlantic Street’s investment team and 30-strong dedicated operating advisor team gives us a sustainable advantage in driving remarkable success — in this case outpacing our underwriting case in just two years.”