TDR Capital buys IMO Carwash as private equity dealmaking picks up

IMO Carwash, the world's biggest independent car wash operator, has been sold to TDR Capital two years after negotiations with the UK-based private equity group broke down.

TDR Capital had tried to buy IMO in 2012, at the height of the eurozone sovereign debt crisis, but the car wash group's owners abandoned the sale.

The deal highlights an improving dealmaking environment in Europe amid signs of an economic rebound, which has helped narrow the pricing gap between buyers and sellers. Private equity groups that have been able to raise funds from investors are now also eager to spend their capital. Terms of the deal were not disclosed.

US-based buyout fund manager Carlyle lost control of IMO in 2009 in a debt restructuring that wiped out its stake and resulted in creditors taking over the company.

Carlyle had acquired IMO in 2006, funding the purchase with a mix of its own cash and more than £300m of debt. Borrowings of the company were reduced from £355m to £185m in the 2009 debt restructuring.

The company's previous owner, JPMorgan's private equity unit, had bought IMO for £350m in 2004.

"We think it's an interesting, strong cash-flow platform from which to invest more capital," Jonathan Rosen, partner at TDR Capital, said of IMO.

Established in Germany in 1965, IMO has expanded across Europe and in Australia. It operates 834 sites in 13 countries, including 323 in Germany and 280 in the UK.

Mike Smith, executive chairman of IMO, said: "We have a clear strategy to enhance the returns from our existing estate as we look to continue our successful refurbishment programme and we will continue to develop new sites in our key growth markets."

The acquisition of IMO is the second investment from TDR Capital's third buyout fund, which closed earlier this year. The fund manager focuses on medium-sized companies mostly in Europe.

In 2013, TDR, started by former Deutsche Bank bankers Manjit Dale and Stephen Robertson, purchased David Lloyd Leisure, the UK operator of high-end fitness clubs. Other investments include debt collector Lowell Group, bought from London private equity firm Exponent in 2011. TDR also owns Algeco, a space rental company with operations in Europe and the US.

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