Ryko Acquiring MacNeil Wash Systems
Combined company will form second largest car wash equipment provider in world
GRIMES, Iowa -- Ryko Solutions Inc., the largest provider of managed car wash systems in North America, has entered into a purchase agreement whereby Ryko will acquire MacNeil Wash Systems Ltd. of Barrie, Ontario, Canada, a leading supplier to the tunnel car wash segment of the industry.
Details of the transaction, which will close April 1 and establish Ryko as the second largest car wash equipment manufacturer in the world, were not disclosed, the company said.
The MacNeil brand name will remain intact as will the company's manufacturing facilities in Canada. MacNeil will operate as a subsidiary of Ryko Solutions.
Vince MacNeil, former CEO of MacNeil Wash Systems, will join the board of directors at Ryko, a move that Steve L'Heureux, CEO of Ryko Solutions, said is instrumental to the joint company continuing to build on its success in the conveyor segment of the car wash industry.
For Ryko, this union presents an opportunity to more than double the company's addressable market through the addition of complementary product lines. It also provides Ryko an entry into the tunnel market segment for its technical service programs, cleaning products and marketing support systems that have proven to increase car wash counts and ticket prices for Ryko car wash operators.
"This is an important event in our industry. While there have been previously announced consolidations among industry suppliers, this is the first that involves two independently strong industry players who are enjoying healthy growth," said L'Heureux. "MacNeil has a well-established reputation within the industry for delivering the best performing and most highly engineered conveyor systems and innovative profit enhancing accessories. By leveraging Ryko's larger R&D and marketing organizations, we see a tremendous opportunity to dramatically expand MacNeil's market share."
Ryko's customers will see new equipment options through direct access to MacNeil products. Traditional MacNeil customers will have expanded choices through their MacNeil distributors supported by Ryko's end-to-end solutions, including the car wash industry's largest technical service network, and local parts warehoused throughout the United States. Customers will also benefit from a larger choice of industry accessories and support systems including water recovery programs and state-of-the-art activation and payment devices along with a new line of tunnel-specific cleaning products.
"This alignment of our business with Ryko allows us to continue our vision of delivering well-engineered car wash solutions that will bring sustainable profit to our customers," said MacNeil. "What is important to me in this relationship are the many synergies and commonalities in how we approach the car wash business. These will be advantageous to our distributors and customers, including a dedicated engineering team and significant investments in R&D, a joint desire to build on our heritage--a legacy of accelerated innovation--and a single shared culture centered around building one team focused on customer success."
For 30 years, MacNeil Wash Systems has provided car wash equipment to the tunnel car wash industry, automotive dealers, fleet and rental markets, offering turnkey systems, add-ons and retrofits.
Ryko is a leading provider of managed car wash systems in North America, offering an integrated, end-to-end clean vehicle solution consisting of equipment, chemicals, a national technical services organization and consumer marketing programs. The company's primary focus is creating maximum profitability in car wash operations for gas/convenience stores, private investors, land developers and auto dealers. Based in Grimes, Iowa, the company has been in operation since 1973 and employs approximately 400 people throughout North America.