Argosy Private Equity Expands Portfolio with Mr. Splash Car Wash Acquisition

Argosy's Strategic Move: Acquiring Mr. Splash Car Wash

In a significant development within the lower middle market private equity scene, Argosy Private Equity has successfully acquired a controlling interest in Mr. Splash Car Wash. This notable acquisition was announced on January 9, 2025, and is viewed as a strategic move to strengthen Argosy's foothold in the growing car wash industry in Wisconsin.

Overview of Mr. Splash Car Wash

Mr. Splash Car Wash operates a six-site express car wash chain primarily located in the Greater Madison area of Wisconsin. The firm is poised to expand further with two additional locations set to open by the end of 2025 in Stoughton and Madison, WI. Mr. Splash enjoys a competitive advantage due to its positioning along high-traffic corridors such as I-90 and I-94, where it attracts a substantial and growing customer base.

Founded by Jeff Joos and Tony Ruiz in 2019, Mr. Splash quickly rose to prominence, becoming the largest express car wash chain in Central Wisconsin. The company's growth is underscored by its strong relationships with local subcontractors and the community, allowing for efficient operations and cost-effective expansion strategies despite rising construction prices in the sector.

Argosy's Vision for Future Growth

Argosy Private Equity is known for its commitment to backing companies with significant potential for development. The firm's partner, Jack Nugent, expressed enthusiasm for the acquisition, praising Mr. Splash's experienced management team and their proven expansion track record. With the acquisition, Argosy aims to implement its Value Acceleration Methodology (VAM™) to enhance business value across several areas, including brand strategy development and technological advancements.

Argosy's collaborative plan will involve working closely with Mr. Splash's management to identify acquisition opportunities and development prospects that can easily integrate into existing operations, thus maximizing growth potential. Notably, plans are already underway for a key strategic partnership intended to amplify Mr. Splash's market position and reach.

Community Connection and Leadership Commitment

One of the unique selling propositions for Mr. Splash is its commitment to community and customer relationships, which has been a cornerstone of its operational ethos. CEO Jeff Joos emphasized this sentiment, stating that the company is not merely a car wash but a community brand that thrives on care, trust, and loyalty. This ethos is essential as the company progresses with its partnership with Argosy, aiming for sustainable growth while maintaining its strong local roots.

Furthermore, Tony Ruiz, co-owner of Mr. Splash, conveyed confidence in Argosy's support, reiterating their strategic direction that aims to solidify their leadership position in Wisconsin's car wash sector for the foreseeable future.

Looking Ahead

As Argosy Private Equity embarks on this journey with Mr. Splash, the future looks promising, marked by ambitious growth objectives and a robust operational framework. By leveraging its existing resources and expanding through strategic partnerships, Mr. Splash is well-positioned to capitalize on the flourishing car wash market in Wisconsin and potentially beyond.

In conclusion, this acquisition signals not only a new chapter for Mr. Splash but also a strategic alignment for Argosy Private Equity as it continues to focus on lower middle market investments. With plans to innovate and expand, both entities are set to enhance their influence in the industry while nurturing their core values rooted in community and service.