Circle K Parent to Acquire True Blue Car Wash Chain

Alimentation Couche-Tard, the Canada-based parent of convenience store chain Circle K, is acquiring all of the membership interests of True Blue Car Wash.

True Blue is an operator of express tunnel car washes under the Clean Freak brand in Arizona and Texas and the Rainstorm brand in Illinois and Indiana. The chain currently has 65 outlets in high-traffic areas of the four states, as well as a pipeline of new car wash sites under development.

Based in Scottsdale, AZ, True Blue, which claims its outlets washed more than 10M cars last year, was cited by Inc 5000 as one of the fastest-growing companies in the US. According to the announcement of the acquisition, True Blue’s revenue grew by approximately 45% between 2018 and 2021.

Couche-Tard, headquartered in Laval, Quebec, will absorb all of True Blue’s 170K fast-pass subscription members, representing more than half of the company’s total revenue. True Blue’s management, office and operations team will join Couche-Tard when the transaction closes in Q1 2023, with current True Blue CEO Stuart Crum retaining his position.

An estimated 60% of the highly fragmented car wash business is comprised of stand-alone operators who own one or two car wash locations. Couche-Tard, which owns an estimated 2,500 car-wash locations, said it sees the acquisition of True Blue as a natural extension of its growing network.

With more than 85% of True Blue’s car wash locations within three miles of a Circle K store, Couche-Tard said the geographic overlap will support traffic-driving offers between the True Blue facilities and the Circle K convenience outlets.

“We are committed to leading and innovating in fast-growing segments that meet our customers’ needs. With True Blue, we have a great opportunity to extend our brands into a very attractive industry subcategory in a way that complements our convenience and mobility offerings and enhances value for our customers, said Brian Hannasch, President/CEO of Alimentation Couche-Tard, in a statement.

“Adding True Blue’s high-quality car wash sites to our family presents compelling opportunities to cross-promote and build loyalty and engagement for both customers and our team members,” Hannasch said.

In addition to express car washes, Couche-Tard is augmenting the Circle K brand by becoming the first convenience store chain to embrace marijuana outlets.

In October, Circle K has entered an agreement with cannabis grower and distributor Green Thumb Industries to open medical marijuana outlets in retail space adjacent to Circle K stores in Florida.

Green Thumb, owner of Rise Dispensaries, will supply the weed to the gas-station outlets from its new 28-acre cultivation facility in Ocala, FL. The pot farm is scheduled to open at the end of this year.

Green Thumb will lease space adjacent to Circle K stores for its new Rise Express outlets, which will offer the company’s brand-named RHYTHM cannabis flower, Dogwalkers pre-rolls, Incredible gummies and Shine vapes for medical use.

The companies said Rise Express will roll out the venture in 2023 with a pilot program involving 10 of Circle K’s 600 Florida convenience store locations.