New York private equity company KKR & Co. Inc. has made a “significant” minority investment into fast-growing Roseville-based car wash developer and operator Quick Quack Car Wash, according to a news release.
The KKR (NYSE: KKR) investment is for expansion into new markets, new technology and to support an employee ownership program.
“We are pleased to welcome KKR as a new strategic partner. Their support is a testament to the impressive business that our team has built and the culture underlying it,” said Quick Quack CEO Jason Johnson, in the news release. “KKR stood out for its breadth of expertise and commitment to supporting our business holistically."
Quick Quack now has more than 230 locations spread over five states, and it has a long list of locations it plans to open in the future, according to its website.
News service Reuters reported that sources familiar with the deal said KKR would invest $850 million. Quick Quack and KKR didn’t immediately respond to requests for comment.
At the end of June, Quick Quack bought an entitled industrial 7.6-acre site in south Placer County at 3870 South Loop Road for a new research-and-development facility.
In the last year, the company has also announced plans or appeared on leasing documents for new car wash locations locally in Carmichael, Lincoln and near Placerville.
New York private credit manager Golub Capital is acting as administrative agent for the investment, and it also made an equity investment into Quick Quack, Golub said on its website.
Golub said it has been lead lender to Quick Quack since 2018, and has supported the company’s growth through multiple add-on financings.
Also known as Kohlberg Kravis Roberts & Co., KKR at December 2023 had assets under management of $553 billion.
KKR said that Quick Quack’s founders and its longtime equity partner, Marina del Rey-based Seidler Equity Partners, will continue to hold meaningful stakes in the company alongside KKR. Founded in 2004, Quick Quack is one of the largest and fastest-growing express-format car wash operators in the U.S.
“With its differentiated operating model, strong track record of organic growth and world-class team, we believe Quick Quack is well-positioned to continue its growth trajectory,” said Sam Plotner, director at KKR, in a news release. “We look forward to working with the Quick Quack and Seidler teams to continue to drive growth by building upon the strong foundation that they have established over the past two decades.”
Quick Quack started with a single location in 2004 is now the fourth-largest car wash chain in the country. One of the hallmarks of Quick Quack is membership. Anyone can buy a single car wash, but customers who opt to be members get unlimited washes for the cost of about two car washes per month. That membership recently was enhanced with quick-lane identification technology that gets members through the wash faster through express lanes that identify the member’s license plate so they don’t need to meet the attendant.
Quick Quack is set up as exterior-only car washes, where the driver sits in the car as it gets pulled through the washing system, which uses colored lighting to make the cleaning journey a little more entertaining. Some locations can wash up to 165 cars per hour. The washes also offer clean wipes for use on the inside, and they have vacuum stations set up to allow drivers to clean the inside of the cabin of pet hair, leaves or whatever cereal is laying on the carpet.
Where real estate allows for it, Quick Quack is making its second approach lanes into member fast lanes, so members don’t have to wait in traffic as long.
