Franchise Equity Partners to Acquire IMO Car Wash from Driven Brands
Rhea-AI Summary
Franchise Equity Partners announced on December 2, 2025 that it has entered into an agreement to acquire IMO Car Wash, the world's largest tunnel car wash operator, from Driven Brands (DRVN). The deal includes IMO's entire portfolio of 720 locations, primarily in the United Kingdom and Germany, plus sites in nine other European countries and Australia. IMO was founded 60 years ago and serves millions annually. FEP said it will prioritize increasing wash volumes, elevating the customer experience, and leveraging retail partnerships under its inaugural international acquisition.
Positive
- Acquisition covers 720 locations across UK, Germany, nine other European countries, and Australia
- Deal represents FEP's first international transaction (Dec 2, 2025)
- IMO has a 60-year brand history with millions of annual customers
- Planned operational focus: increase wash volumes and improve customer experience
Negative
- None.
News Market Reaction
On the day this news was published, DRVN gained 0.21%, reflecting a mild positive market reaction. Our momentum scanner triggered 21 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $5M to the company's valuation, bringing the market cap to $2.53B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
DRVN was up 3.43% while peers like KAR (2.87%), CARG (1.41%), and ABG (1.24%) also rose, but no peers appeared in the momentum scanner, suggesting a more stock-specific move than a broad sector rotation.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 02 | Business divestiture | Positive | +0.2% | FEP to acquire IMO Car Wash’s <b>720</b>-site global network from DRVN. |
| Dec 02 | Asset sale terms | Positive | +0.2% | DRVN to sell IMO for <b>€406 million</b> and use cash mainly to pay debt. |
| Nov 19 | Conference participation | Neutral | -2.8% | Announcement of Morgan Stanley conference fireside chat and webcast details. |
| Oct 21 | Earnings call notice | Neutral | -3.7% | Scheduling Q3 earnings release and call on <b>Nov 4, 2025</b>. |
| Oct 21 | Debt refinancing | Positive | +2.7% | Closed <b>$500M</b> securitization to refinance older notes and fund needs. |
Strategic balance-sheet moves and portfolio transactions have generally coincided with positive price reactions, while information-only conference and call announcements have seen negative moves.
Over the last few months, Driven Brands has focused on portfolio reshaping and balance sheet management. It agreed to divest its international IMO Car Wash business, with 720 locations, alongside a separate announcement that the sale price was €406 million and proceeds would mainly reduce debt. Earlier, DRVN closed a $500 million securitization to refinance existing notes. Conference and earnings-call scheduling updates around October–December 2025 saw negative reactions, contrasting with generally positive responses to financing and divestiture actions, framing today's international car wash sale within an ongoing de-leveraging and simplification story.
Market Pulse Summary
This announcement highlights Driven Brands’ continued reshaping of its portfolio, with Franchise Equity Partners acquiring IMO Car Wash’s 720 international locations. Earlier disclosures tied the deal to a €406 million sale price, with proceeds earmarked mainly for debt reduction alongside a recent $500 million securitization. Together with reiterated FY2025 revenue of $1.85–1.87B and Adjusted EBITDA of $445–455M, investors may focus on execution of the divestiture, leverage targets, and the performance of remaining segments.
AI-generated analysis. Not financial advice.
FEP Announces Inaugural International Acquisition via a Purchase of the Leading Global Tunnel Car Wash Operator With 720 Locations
Founded 60 years ago, IMO Car Wash is one of the most recognized and trusted car wash brands globally, serving millions of customers annually through its convenient, high-volume model. The company operates a uniquely diversified footprint and is supported by a management team with deep expertise in the car wash sector.
"We believe IMO represents a rare opportunity to acquire a market-leading, long-standing brand with a highly defensible footprint and a strong operating team," said Scott Romanoff, Co-Managing Partner at FEP. "Our goal is to help optimize and enhance performance across the existing portfolio. With IMO's established customer base, retail partnerships, and experienced leadership, we see significant opportunity to drive organic growth and continue strengthening the brand."
"Our investment in IMO is FEP's inaugural transaction outside
Under FEP's ownership, IMO will focus on increasing wash volumes, elevating the customer experience, and further leveraging its strategic retail partnerships. IMO maintains strong relationships with retailers across the
"This marks an important milestone for IMO Car Wash," said Adam Green, President of IMO Car Wash. "FEP understands both the heritage and the potential of our brand. Their long-term approach, commitment to operational excellence, and deep experience in multi-unit business models make them an ideal partner as we focus on unlocking more value from our existing network. We look forward to working with FEP to strengthen our market position and continue serving our customers."
The acquisition reinforces FEP's strategy of partnering with category-leading operators in resilient industries where scale, brand recognition, and operational efficiency create sustainable competitive advantages.
For more information about Franchise Equity Partners, please visit https://www.fep-us.com/.
About Franchise Equity Partners:
Franchise Equity Partners is a private investment firm specializing in providing capital to franchise businesses and their owners. Its differentiated approach combines extensive corporate finance and operating experience with an initial target portfolio size of
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SOURCE Franchise Equity Partners
FAQ
What did Franchise Equity Partners announce on December 2, 2025 regarding IMO Car Wash?
How many locations does IMO Car Wash include in the acquisition of DRVN assets?
What are FEP's stated priorities for IMO Car Wash after the acquisition?
Is the acquisition of IMO Car Wash FEP's first deal outside the United States?
What information about the purchase price or deal proceeds for DRVN shareholders was disclosed?
Where are IMO Car Wash's largest markets located following the acquisition announcement?
