Portfolio

YANG Establishes Automotive Services Subsidiary

YANG intends to create a vertically integrated company in the automotive services industry within the Central & Eastern Europe region. Within the first 3 years of operation, the newly created subsidiary will focus on the car wash industry, defined by a large number of scattered operators, via a newly established United Car Washes AG.

In contrast, the more mature US car wash market has shown positive commercial outcomes following the consolidation of minor car wash operators into bigger and more efficient chains: major private equity sponsors such as Warburg Pincus and Oaktree have entered the car wash services market in the last five years. United Car Washes looks to initially capture significant economies of scale as an owner and operator of major car wash franchises within the CEE region, and grow via M&A to vertically integrate the car wash value chain across tunnel equipment and additional car wash services.

Strategic Drivers

Growth capital surge: Due to the recent surge in interest of private equity sponsors to enter the car wash industry, United Car Washes has a positive outlook on the potential growth equity or private debt opportunities as the prospective leading operator within CEE.

Cost effective: Car washes operated by United Car Washes implement a cost effective operational structure - high output & high traffic location - that allows to increase gross margin per car wash, washing an above industry average number of cars.

Low labour: Our operated franchises require below 75% less labour on-site compared to industry average. This is accelerated by strategic facility design: the entire car wash bay is monitored with a tablet from the express control cabin.

Local expertise & management: United Car Washes hires local management, which allows to capitalize on the know-how and insights within CEE markets.

Advanced digital infrastructure: Car washes operated by United Car Washes benefit from an app-based membership system, license plate recognition, data monitoring tools, business intelligence and accounting system, point of Sale (POS) system, and detergent management system. This increases the brand loyalty and lifetime customer value.

Sustainability & ESG

Water Recycling System: United Car Washes implements a state-of-the-art water recycling system, reclaiming up to 90% of the water used in our processes. This helps heavily reduce water consumption.

Stainless steel arches: United Car Washes operated car washes use stainless-steel arches that vehicles move through during the wash cycle. Arches have an extremely long life cycle and are rust-free, ensuring long-term sustainability.

Minimized chemical usage: We integrate advanced technologies to measure car dirtiness and optimize chemical dosing for minimal environmental impact. Our operated car washes do not require a pre-wash zone, reducing chemicals in the washing process.

Reliable filtration systems: Our operated car washes filter car waste and water with specialized filters effectively, capturing oil products and contaminants. Disposal adheres to stringent environmental standards.

Energy efficiency: United Car Washes car wash sites use energy-saving LED lights throughout the facilities. This results in lowering energy consumption and decreasing carbon footprint.

Built-to-Suit building design: The operated franchises benefit from instantly identifiable architecture, natural light inside and process maximization site layout. Our design also offers multi-lane, unlimited membership owners pay lanes, increasing revenue and improving LTV.

Economic outlook: CEE is the fastest growing region in Europe, defined by a rapidly growing middle class. United Car Washes focuses on the tunnel car wash, which typically has over 50% customers from the middle class segment, as per industry reports.

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