Julie & Holleman LLP, a preeminent shareholder rights firm, is investigating the proposed $7 per share buyout of Mister Car Wash, Inc. (NASDAQ: MCW) by the company's largest shareholder, private equity firm Leonard Green & Partners. The deal, which does not require public shareholder approval, is expected to close soon.
Additional Information
Before the merger was announced, Leonard Green already owned approximately two-thirds of Mister Car Wash's stock. Pursuant to the deal, Leonard Green proposes to buy the remaining outstanding shares for just $7 per share, which implies a total value for the company of approximately $3.1 billion.
Julie & Holleman, whose attorneys have helped secure hundreds of millions of dollars in prior cases, is pursuing potential legal claims based on the apparent unfairness of the deal. The firm is concerned about conflicts arising from the fact that key insiders are continuing on with the company while public stockholders are being cashed out for a price that may be well below the company's true value. Julie & Holleman is also concerned by the fact that Mister Car Wash's board of directors is not submitting the deal for public shareholder approval. Instead, Leonard Green has approved the deal on its own, without a public shareholder vote.