Mace to sell four car washes for $7m

Thursday, January 22, 2009

HORSHAM, Pa.--Mace Security International announced this week it has sold two car washes in San Antonio, and agreed to sell two more in Austin, Texas, for a combined total of $7 million. This is a continuation of the company's stated plans to rid itself of its car-wash business entirely, and to focus on the security business going forward.

Mace will sell two of its three car washes, according to an agreement reached Jan. 15, for $6 million. "After the payment of debt and customary closing costs, the Corporation expects to net approximately $3,200,000 in cash from the sale," according to a release. "The debt which will be paid is cross collateralized on the two car washes being sold plus a third Austin, Texas car wash owned by the Corporation. The third car wash will have no secured debt after the debt payment."

On Jan. 14, the company closed on a sale of its two remaining San Antonio car washes, which has already been shuttered due to losses. They sold for $1 million, including $250,000 in cash and a promissory note for $750,000, to be paid out through early 2014.

In an interview with Security Systems News late last year, Mace CEO Dennis Raefield said the proceeds from car-wash sales would likely be put toward organic growth and the possible acquisition of a third-party central station.