CHARLOTTE, N.C. — Magnolia Wash Holdings announced in a press release it has received a growth capital investment from funds managed by Oaktree Capital Management, L.P. to fuel the company’s long-term growth strategy.
As part of the transaction, Oaktree has acquired a majority ownership position in the company.
A&M Capital Opportunities Fund will maintain a material minority ownership stake in the enterprise.
Magnolia currently operates 93 carwash locations in eight states, with 25 additional locations under construction, and more than 200,000 members in its Wash Club Membership Program.
“As we explored potential investment partners, Oaktree stood out for its proven track record of fostering rapid growth, its unique partnerships with management teams, and its value creation for stakeholders,” said Jose Costa, CEO of Magnolia Wash Holdings. “We expect Oaktree’s resources, experience and track record will be invaluable to us as we continue to expand our presence in the fast-growing express carwash category. I can’t wait to see where we’ll be in a few years with this outstanding partnership.”
“Magnolia and its management team have an impressive track record, and with our investment, we believe they are poised to grow into a preeminent operator in the industry,” said David Quick, managing director and assistant portfolio manager at Oaktree. “This is a special opportunity to partner with an experienced management team at a company that is well positioned to take advantage of the significant runway ahead.”
“We have enjoyed a fantastic partnership with Magnolia Wash Holdings, beginning with our initial investment in 2020 when the business had just seven locations,” said Sean Epps, partner at AMCO. “As a result of the company’s continued growth, we have recognized that now is the time to expand Magnolia’s capital partnerships. Our firm has a close institutional relationship with Oaktree, and we share a common vision as stewards for the company as it enters an exciting next phase of growth.”
J.P. Morgan Securities LLC served as the exclusive financial advisor to Magnolia in connection with this transaction and Harris Williams served as exclusive advisor to Oaktree.