Mister Car Wash Take-Private Deal Under Investigation
A national securities law firm has launched an investigation into the proposed take-private transaction of Mister Car Wash, Inc. The probe targets the company's board of directors and its controlling stockholder, Leonard Green & Partners.
The take-private deal values Mister Car Wash at a total enterprise value of $3.1 billion. Leonard Green & Partners (LGP) will pay $7.00 per share in cash for all outstanding shares it doesn't already own. This price represented a 29% premium over the 90-day volume-weighted average share price leading up to the announcement. LGP is no new partner, having first invested in the car wash brand in 2014 and holding approximately 67% of the company's outstanding stock before the new agreement. Because of its majority ownership, LGP was able to approve the transaction with its own shares through written consent, eliminating the need for a vote from the broader pool of public stockholders. The transaction was unanimously approved by a special committee of independent directors from Mister Car Wash's board, who were advised by their own financial and legal counsel. All directors affiliated with LGP recused themselves from the board's final approval. Despite the premium, the investigation centers on whether the deal is fair to public shareholders. The core of the probe revolves around potential conflicts of interest and breaches of fiduciary duty by the board and LGP. Law firms initiating the investigation point out that with the power to approve the sale to itself, LGP had an incentive to secure the lowest possible price. Mister Car Wash went public in June 2021 with an IPO price of $15 per share. The stock's value climbed above $20 that year before experiencing a significant decline, trading at times below $6 in 2025. At the time of the buyout announcement, some stock analysts had set price targets for Mister Car Wash shares above $8.00. The company operates approximately 550 locations and generated over $1.05 billion in revenue for the 2025 fiscal year. CEO John Lai stated that going private would allow the company to "invest more boldly" in its stores, employees, and technology with a long-term goal of tripling its footprint. The transaction is expected to close in the first half of 2026.
