Mister Car Wash to Go Private in Multi-Billion Dollar Buyout

Mister Car Wash agrees to a $7.00/share buyout by majority owner Leonard Green & Partners, a 29% premium, amid strong 2025 financials and legal scrutiny.

The publicly traded chapter of Mister Car Wash is set to close following a definitive agreement for its acquisition. Leonard Green & Partners (LGP), the company's majority shareholder, will take full ownership in a deal valued at approximately $3.1 billion. The announcement has propelled the stock price upward, though the proposed terms are already facing legal scrutiny.

Financial Performance Amidst Transition

Coinciding with the buyout news, Mister Car Wash released its financial results for the fourth quarter and full year 2025. Quarterly revenue saw a 4% year-over-year increase, reaching $261.2 million. Adjusted earnings per share were reported at $0.11.

For the entire 2025 fiscal year, the company generated $1.05 billion in revenue. Its adjusted EBITDA grew by 8% to $345.4 million. A key growth driver remains the "Unlimited Wash Club," whose membership base expanded by 7% to roughly 2.3 million customers, despite a slight moderation in the growth rate compared to prior periods.

Acquisition Terms and Market Reaction

Under the terms disclosed this week, shareholders are slated to receive $7.00 in cash for each share they own. This price represents a premium of about 29% over the stock's volume-weighted average price from the preceding 90 trading days.

The market's immediate response was positive, with shares advancing roughly 16% on the news. The stock price subsequently traded in a narrow range close to the offered buyout price. An independent special committee of the board of directors has already approved the transaction. Consequently, the company has withdrawn its financial guidance for 2026 and canceled its earnings conference call related to recent results.

Legal Challenges and Analyst Stance

Not all parties are convinced the offer is equitable. While research firms including UBS and Piper Sandler adjusted their price targets to $7.00—downgrading the stock to "Neutral" or "Hold" ratings—legal challenges are emerging.

Several law firms, such as Kaskela Law LLC, have announced investigations into the fairness of the proposed acquisition price. The central question is whether the $7.00 per share valuation is adequate. These probes are examining if LGP, which already controls approximately 67% of the shares, is leveraging its majority position to acquire the remaining equity below fair value. This concern is amplified by the fact that some analysts had previously issued price targets exceeding the current offer.

Path to Completion

The transaction is expected to be finalized in the first half of 2026, pending the receipt of necessary regulatory approvals. Until then, these approvals and the ongoing legal reviews represent the final obstacles before Mister Car Wash completes its departure from the public markets.