Argonne Capital acquires Lube Stop

CLEVELAND (Sept. 5, 2014) — Private investment firm Argonne Capital Group L.L.C. has acquired the assets of Lube Stop Inc. from the company's founder.

Founded in 1985, Lube Stop is the oldest privately-owned quick oil change company in Northeast Ohio, according to Argonne. The company operates 37 locations in the Cleveland and Akron-Canton areas that service the vehicles of more than 25,000 customers per month with complete oil changes and ancillary automotive services.

Lube Stop's corporate office will remain in the Cleveland metro area following the transaction. The companies did not disclose the acquisition cost.

“Argonne has spent considerable time trying to find the right investment in the automotive service space,” said Karl Jaeger, Argonne managing director. “With our acquisition of Lube Stop, we've found a stable platform and strong brand which we hope to use as a stepping stone for future acquisitions and growth.”

Tony Cammerata, president of Lube Stop, said the chain “could not have asked for a better partner in Argonne.

“Their experience in growing multi-unit concepts and commitment to the Lube Stop culture will ensure the next chapter in the company's history is a great one.”

With the Lube Stop buyout, Argonne has completed 14 acquisitions in the multi-unit restaurant, retail and service sectors. The company's portfolio spans more than 950 units covering brands such as Lube Stop, IHOP, Applebee's, Krystal, On The Border and Stevi B's Pizza, with a workforce of over 25,000 and system-wide annual sales in excess of $1.5 billion.

King & Spalding and McGuireWoods L.L.P. advised Argonne in the Lube Stop acquisition.

Argonne said it targets equity investments of $25 million to $75 million per transaction and has a “significant presence” in multi-tenant retail real estate through its RCG Ventures platform. In aggregate, Argonne and its affiliates have more than $700 million of equity under management.