RECENT RELEASES
Hand & Stone Franchise Corporation-
Business
Hand & Stone is a leading franchisor and operator of spas offering affordable, convenient, and professional massage, skincare and health and wellness services. As of June 2022, Hand & Stone operates nearly 550 locations in the U.S. and Canada and serves a loyal base of over 500,000 members.
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Harvest Partners Investments
In June 2022, Harvest acquired Hand & Stone in partnership with management. To fund the acquisition, Harvest provided equity capital and arranged the debt financing. In addition, Harvest arranged equity co-investment capital.
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Investment Thesis
- A leading provider of health and wellness services in a large, growing and fragmented market
- Long record of strong financial performance with compelling financial metrics
- Attractive franchisor business model with strong unit economics and a healthy and diversified franchisee base
- Recurring revenue given contractual royalty payments and monthly subscription model
- Multiple levers for growth: same-store sales, franchise development, new services, supplier rebates, M&A
- Management team with extensive record of innovation and execution
