Australian private equity firm Propel Investments today announced it had agreed to provide expansion capital to IMO Car Wash Australasia (“IMOA”), the national car wash company, in return for an equity stake of up to 50%.

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,” said Fraser Henderson, Managing Director of Propel.

IMOA currently operates six car wash sites across New South Wales, Queensland and Victoria.  The funding provided by Propel will allow IMOA to continue with its plans to roll out further sites throughout Australia.

The IMO Group is the global leader in car washing with approximately 1,000 sites in 14 countries. The IMO Group (ex-Australia) is owned by the Carlyle Group and UK management. 

Unlike the high cost and slow service offered by cafe car washes, the IMO tunnel car wash concept is able to wash and dry a car in approximately two and a half minutes at prices starting from $4.00.

Albin Kurti, Managing Director of Propel, said 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 motor 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 Australian households become more water conscious and as the DIY car wash culture diminishes,” said Mr Kurti.

Bob Lapointe, co-founder and Chairman of IMOA, has a long history of introducing proven mult-site operations into the Australian market.

“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 IMOA’s expansion,” said Mr Lapointe, who previously introduced KFC, Pizza Hut, Sizzler and Lone Star to Australia.

IMOA Chief Executive and co-founder, David Anderson, added:  “The IMOA business will continue to operate as it has always done - with focus on an innovative and quality product, superior customer service and great value.”

Mr Henderson and Mr Kurti will join the IMOA board.

Separately, Propel announced that its investee company, Bledisloe Holdings, has completed three bolt-on acquisitions in the last six months. Bledisloe, which is the largest funeral home operator in New Zealand and the second largest in Australia, has also recently entered into sale and leaseback arrangements on two properties in Queensland.

Bledisloe board member and Propel Managing Director, Peter Dowding, said “Bledisloe operates in an industry which is highly fragmented; we are confident the two core markets in which Bledisloe operates will continue to provide Bledisloe with significant growth potential over the long term.”

For more information please visit www.imocarwash.com.au and www.propelinvestments.com.au, or contact:

P&L Corporate Communications
Ian Pemberton
Ph: +61 (0) 2 9241 6044         
Mob: +61 (0) 402 256 576