Sydney-based private equity firm Propel Investments has agreed to provide expansion capital to IMO Car Wash Australasia in return for an equity stake of up to 50 per cent.
Sydney-based private equity firm Propel Investments has agreed to provide expansion capital to IMO Car Wash Australasia in return for an equity stake of up to 50 per cent. Terms were not disclosed.
‘We are delighted to partner with the global leader in the car wash sector and a management team with a proven track record in rolling out multi‐site operations in Australia,’ says Propel managing director Fraser Henderson.
IMO Australia currently operates six car wash sites in New South Wales, Queensland and Victoria. The funding provided by Propel will allow the firm to continue with its plans to roll out further sites throughout Australia.
The IMO group, the global leader in car washing with approximately 1,000 sites in 14 countries, is owned outside Australia is owned by US private equity firm Carlyle Group and UK management.
According to managing director Albin Kurti, Propel was attracted to the fragmented nature of the car wash sector, its strong cash flow characteristics and the low penetration rate of car washes in Australia relative to other parts of the world.
‘In Australia, the ratio of vehicles per car wash site is significantly higher than in Europe and the US, so we believe there is significant scope to roll out many more sites, particularly as households become more water conscious and the DIY car wash culture diminishes,’ says Kurti, who along with Henderson will join the IMO Australia board.
Bob Lapointe, co‐founder and chairman of IMO Australia, has a long history of introducing multi‐site operations into the Australian market, having previously introduced KFC, Pizza Hut, Sizzler and Lone Star. ‘We have developed a strong working relationship with the Propel team, and look forward to having their expertise on our board for the next phase of expansion,’ he says.
The company’s chief executive and co‐founder, David Anderson, adds: ‘The business will continue to operate as it has always done – with focus on an innovative and quality product, superior customer service and great value.’
Propel has also announced that its portfolio company, Bledisloe Holdings, has completed three bolt‐on acquisitions in the past three months. Bledisloe, the largest funeral home operator in New Zealand and the second largest in Australia, has also concluded sale and leaseback arrangements on two properties in Queensland.
Peter Dowding, a Bledisloe board member and Propel managing director, says: ‘Bledisloe operates in an industry which is highly fragmented. We are confident the two core markets in which it operates will continue to provide the company with significant growth potential over the long term.’
