LAVAL, Quebec — Alimentation Couche-Tard Inc. recently announced that it has entered into a binding agreement to acquire all of the membership interests of True Blue Car Wash LLC, according to a press release.
True Blue operates express tunnel carwash sites under the Clean Freakbrand in the Southwest U.S. as well as the Rainstormbrand in the Midwest.
Founded in 2016, True Blue currently has 65 carwashes conveniently located in high traffic areas in Arizona, Texas, Illinois and Indiana with a strong pipeline of future new to industry sites planned and under development.
With approximately 170,000 fast pass subscription members, representing more than half of total revenue, True Blue has experienced strong growth in recent years and is well positioned to continue to grow in a highly fragmented and growing industry — more than 60% of which is comprised of stand-alone operators owning one to two carwash locations.
True Blue has washed more than 10 million cars over the last year, stated the press release.
Couche-Tard believes these sites are also a natural extension of its current carwash network of more than 2,500 locations and will further enhance the customer experience.
With more than 85% of True Blue’s locations within three miles of a Circle K location, the transaction provides a strong geographic overlap to support traffic-driving offers between True Blue sites and Circle K convenience stores.
“We are committed to leading and innovating in fast growing segments that meet our customers’ needs. With True Blue, we have a great opportunity to extend our brands into a very attractive industry subcategory in a way that complements our convenience and mobility offerings and enhances value for our customers,” said Brian Hannasch, president and CEO of Alimentation Couche-Tard. “Adding True Blue’s high quality carwash sites to our family presents compelling opportunities to cross-promote and build loyalty and engagement for both customers and our team members. We are looking forward to having its talented team join us in our efforts to shape the future of convenience.”
Claude Tessier, chief financial officer, added, “We are impressed by the strong growth achieved by True Blue in recent years, as evidenced by an approximate 45% growth in total cars washed between fiscal 2018 and fiscal 2021, and believe this acquisition will enable future growth for Couche-Tard in this segment as well as contribute to create value for our shareholders”.
The transaction is expected to close in the first half of calendar year 2023, subject to standard regulatory approvals and closing conditions and will be financed using Alimentation Couche-Tard Inc.’s available cash and/or existing credit facilities.
Upon the closing of the transaction, True Blue’s management, office and operations teams are expected to join Couche-Tard, and current CEO Stuart Crum will lead its operations. “I am both delighted and excited to be joining the Couche-Tard/Circle K team. I am confident that together we will build a world-class express carwash business just as Couche-Tard has done over the last 40 years in the convenience store business. We will take our industry-leading playbook with Couche-Tard’s operating and growth model to become the leading operator in the carwash industry,” said Crum.
