Quick Quack Announces Strategic Investment by KKR
KKR, a major global investment firm, has made a significant minority investment in Quick Quack Car Wash, supporting its ongoing growth and expansion. Quick Quack, with over 230 locations across five U.S. states, will continue to be backed by its founders and Seidler Equity Partners. The investment aims to enhance Quick Quack's innovation, marketing, and market expansion.
KKR's Director, Sam Plotner, emphasized Quick Quack's strong growth record and robust operational model. CEO Jason Johnson expressed confidence in KKR's capability to support their mission. The partnership also includes a team member ownership program to boost employee engagement, reflecting KKR’s broader strategy. Financial advisories were provided by Goldman Sachs and William Blair, with legal counsel from O'Melveny & Myers for Quick Quack and Simpson Thacher & Bartlett for KKR.
- KKR's significant minority investment supports Quick Quack's growth and expansion.
- Quick Quack's founders and Seidler Equity Partners retain meaningful stakes, ensuring continued stability.
- The investment will drive innovation, marketing, and organic expansion in new and existing markets.
- Quick Quack is one of the largest and fastest-growing express car wash operators in the U.S. with over 230 locations.
- KKR's extensive industry expertise and resources will benefit Quick Quack's growth trajectory.
- Introduction of a broad-based team member ownership program to enhance employee engagement.
- KKR has a track record of awarding billions in equity value to non-senior management employees across its portfolio.
- The minority investment may dilute existing shareholders' equity.
- Quick Quack's reliance on external investment for growth may imply a need for more substantial capital to sustain operations.
Insights
Quick Quack Car Wash's new partnership with KKR marks a significant development in its growth trajectory. From a financial perspective, this minority investment by one of the leading global investment firms is indicative of Quick Quack's robust business model and growth potential. The collaboration aims to leverage KKR’s extensive industry expertise and resources to accelerate Quick Quack’s expansion and innovation efforts.
Short-term implications include increased liquidity, enabling Quick Quack to invest more heavily in marketing and organic expansion. This is likely to enhance its market position significantly in the express car wash industry, an already growing sector. Long-term benefits include potential for sustained growth backed by a stronger financial partner. Historically, partnerships with investment firms like KKR often lead to improved operational efficiencies and higher shareholder value.
However, minority investments often come with a level of management oversight and strategic direction from the investing firm, which might affect the company's decision-making processes.
In summary, this investment positions Quick Quack well for future growth but entails some trade-offs regarding autonomy. Investors should monitor the company’s financial performance and strategic decisions closely in the coming quarters.
From a market perspective, Quick Quack’s partnership with KKR highlights significant confidence in the express car wash market's potential. This sector has witnessed notable growth due to rising consumer demand for convenience and automobile maintenance. Quick Quack’s strategy to expand in new and existing markets will likely capture a larger market share, particularly in high-growth areas like California and Texas.
With over 230 locations, Quick Quack's ambition to innovate and enhance its services aligns with market trends favoring environmentally friendly and technologically advanced car wash solutions. The backing from a reputable firm like KKR can enhance brand credibility and customer trust, potentially translating into higher customer retention and acquisition.
However, the competitive landscape in the car wash industry is intensifying, with numerous players vying for market dominance. It will be essential for Quick Quack to differentiate itself through unique value propositions, including service quality and customer experience, to sustain its growth momentum.
Overall, the partnership with KKR provides a significant edge in scaling operations, but the company must continue to innovate and maintain high service standards to thrive in a competitive market.
Quick Quack’s founders and its longtime equity partner, Seidler Equity Partners (“Seidler”), will continue to hold meaningful stakes in the Company alongside KKR. The new investment will support the continued acceleration of Quick Quack’s growth through innovation, marketing and organic expansion in new and existing markets.
Founded in 2004, Quick Quack is one of the largest and fastest growing express format car wash operators in the
“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. “We look forward to working with the Quick Quack and Seidler teams to continue to drive growth by building upon on the strong foundation that they have established over the past two decades.”
“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 Jason Johnson, CEO of Quick Quack. “KKR stood out for its breadth of expertise and commitment to supporting our business holistically. We are confident that having access to KKR’s extensive industry knowledge and resources in addition to Seidler’s continued support will benefit our mission of ’changing lives for the better’ and being ’fast, clean, loved…everywhere’.”
“We look forward to the continuation of our long partnership with Quick Quack. The addition of KKR and their impressive resources signifies an exciting new chapter in the Quick Quack story,” said Eric Kutsenda, Managing Partner at Seidler.
KKR invested in Quick Quack primarily through funds and accounts managed by its Strategic Investments Group.
KKR, Seidler, and Quick Quack’s founders will support the Company in implementing a broad-based team member ownership program. This strategy is based on the belief that team member engagement through ownership is a key driver in building stronger companies. Since 2011, more than 40 KKR portfolio companies have awarded billions of dollars of total equity value to over 100,000 non-senior management employees.
Goldman Sachs & Co. LLC and William Blair & Company LLC acted as financial advisors and O’Melveny & Myers LLP acted as legal advisor to Quick Quack. Simpson Thacher & Bartlett LLP acted as legal counsel to KKR.
About KKR
KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group’s website at www.globalatlantic.com.
About Quick Quack Car Wash
Quick Quack Car Wash is “Fast. Clean. Loved... Everywhere.” Quick Quack has over 230 locations in
About Seidler Equity Partners
Seidler Equity Partners and its affiliates have been investing in market-leading companies since 1992. SEP aligns with business founders and management teams to achieve long-term growth and preserve company stewardship. For more information, visit www.SEPfunds.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240611046579/en/
Media:
For KKR:
Julia Kosygina
212-750-8300
media@kkr.com
For Quick Quack Car Wash:
Tracy Delgado
916-295-0243
tracyd@dontdrivedirty.com
For Seidler Equity Partners:
Eric Kutsenda
213-683-4596
info@sepfunds.com
Source: KKR
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