MAGNOLIA WASH HOLDINGS ANNOUNCES GROWTH CAPITAL INVESTMENT

Growth capital investment will support Magnolia's continued expansion

CHARLOTTE, N.C., July 25, 2023 /PRNewswire/ -- Magnolia Wash Holdings ("Magnolia" or "the Company"), a leading and fast-growing organization of express car washes committed to reinventing the consumer experience through technology and innovation, today announced it has received a growth capital investment from funds managed by Oaktree Capital Management, L.P. ("Oaktree") to fuel the company's long-term growth strategy. As part of the transaction, Oaktree has acquired a majority ownership position in the Company. A&M Capital Opportunities Fund ("AMCO") will maintain a material minority ownership stake in the enterprise.

Magnolia currently operates 93 car wash locations in eight states, with 25 additional locations under construction, and more than 200,000 members in its Wash Club Membership Program.

"As we explored potential investment partners, Oaktree stood out for its proven track record of fostering rapid growth, its unique partnerships with management teams, and its value creation for stakeholders," said Jose Costa, CEO of Magnolia Wash Holdings. "We expect Oaktree's resources, experience and track record will be invaluable to us as we continue to expand our presence in the fast-growing express car wash category. I can't wait to see where we'll be in a few years with this outstanding partnership."  

"Magnolia and its management team have an impressive track record, and with our investment, we believe they are poised to grow into a preeminent operator in the industry," said David Quick, managing director and assistant portfolio manager at Oaktree. "This is a special opportunity to partner with an experienced management team at a company that is well positioned to take advantage of the significant runway ahead." 

"We have enjoyed a fantastic partnership with Magnolia Wash Holdings, beginning with our initial investment in 2020 when the business had just seven locations," said Sean Epps, partner at AMCO. "As a result of the Company's continued growth, we have recognized that now is the time to expand Magnolia's capital partnerships. Our firm has a close institutional relationship with Oaktree, and we share a common vision as stewards for the Company as it enters an exciting next phase of growth."

J.P. Morgan Securities LLC served as the exclusive financial advisor to Magnolia in connection with this transaction and Harris Williams served as exclusive advisor to Oaktree.

About Magnolia Wash Holdings
Magnolia Wash Holdings operates several express wash brands throughout Alabama, South Carolina, North Carolina, Florida, Georgia, Virginia, Ohio and Tennessee all of which deliver a premium on-premise experience including its Unlimited Wash Club Membership Program, free towels, free vacuums and free mat washing stations. The Charlotte, North Carolina-based company is working to consolidate its operations under the Whistle Express banner in the coming months, debuting a new brand look and feel. For more information, visit www.magnoliawashholdings.com. 

About Oaktree
Oaktree is a leader among global investment managers specializing in alternative investments, with $172 billion in assets under management as of March 31, 2023. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in credit, private equity, real assets and listed equities. Oaktree has over 1,100 employees and offices in 20 cities worldwide. For additional information, please visit Oaktree's website at www.oaktreecapital.com. 

About A&M Capital Opportunities
A&M Capital Opportunities, with assets under management of approximately $500 million, is Alvarez & Marsal Capital's lower middle-market growth strategy, focused on shared control and structured minority equity investments in North America. AMCO partners with business owners and management teams to help recapitalize and grow businesses, leveraging deep operational capabilities and industry relationships to position them for accelerated long-term growth. AMCO has significant experience with all types of transactions, including growth equity, growth buyouts, recapitalizations, and consolidations of fragmented sectors. More broadly, Alvarez & Marsal Capital is a multi-strategy private equity investment firm with over $4.65 billion in total assets under management across four investment strategies, which maintains a strategic association with Alvarez & Marsal, one of the largest operationally focused advisory firms in the world.  For more information, visit www.a-mcapital.com/opportunities. 

SOURCE Magnolia Wash Holdings