Brett Overman, founder and chairman of Zips Car Wash of Jonesboro, announced Wednesday that Zips has acquired Boomerang Car Wash of Little Rock — a transaction Overman said will create North America's third largest tunnel car wash company with 57 locations across the Southeast and South Central U.S.
Overman declined to disclose financial details, but said the deal represents the largest single-company acquisition in the history of the car wash industry.
With Zips' 23 locations and Boomerang's 31 operations, and three more sites under construction, the combined company's footprint will cover nine states: Arkansas, Oklahoma, Kansas, Texas, Tennessee, North Carolina, Florida, Louisiana and Mississippi.
"With the other deals we have in our acquisition pipeline, we fully expect to be the second largest car wash company in the U.S. by the end of 2016," Overman said.
Overman launched his first car wash in Paragould in 2004.
"It's really taken off the last five years from surrounding ourselves with great team members," he said. "It was going to be a passive investment income thing but it has grown and expanded."
Autobell Car Wash of Charlotte, North Carolina, the second largest car wash company in the country, has 71 locations. Overman expects to surpass that by the end of the year.
Overman says Zips will maintain management offices in Jonesboro and Little Rock. James Burks of Boomerang will become CEO of the combined company.
"We're excited to announce that the entire Boomerang management team is staying on board with Zips," Overman stated. "Boomerang is a great company, and James Burks has done a fabulous job leading Boomerang to its position as one of the country's most respected car wash organizations."
Overman said the acquisition of Boomerang was part of a plan to "expand smartly," and he plans for the company to continue growing in the same geographical vicinity where it already owns car washes.
Zips also plans to expand its Unlimited Wash Club offering to all its new locations, and the company will continue to offer free vacuums.
"Our plan is to soon become the top car wash company in North America, which makes this acquisition a great fit for us and a great opportunity for our customers to continue to enjoy our quick, affordable washes," Overman said.
The rebranding of Boomerang Car Washes as Zips Car Washes will take place at all 31 locations over the next two to four months.