Levine Leichtman Capital Partners has sold Hand & Stone Massage and Facial to Harvest Partners. No financial terms were disclosed. Hand & Stone is an operator of spas.
LOS ANGELES – June 7, 2022 — Levine Leichtman Capital Partners (“LLCP”), a Los Angeles-based private equity firm, announced today that it has sold its portfolio company Hand & Stone Massage and Facial Spa (“Hand & Stone” or the “Company”) to funds managed by Harvest Partners, LP. Financial terms of the transaction were not disclosed.
Hand & Stone is a leading franchisor and operator of spas offering affordable, convenient, and professional massage, skincare and health and wellness services. Hand & Stone currently operates nearly 550 locations in the U.S. and Canada and serves a loyal base of over 500,000 members. The Company was founded in 2004 and is headquartered in Trevose, Pennsylvania.
Andrew Schwartz, Partner of LLCP, said, “The Hand & Stone team has built a premier, market-leading platform that is extremely well-positioned for continued growth. Following our initial investment in 2015, Hand & Stone made significant investments in management, sales and marketing, technology systems, and operational resources to deliver exceptional same-store sales growth, robust new unit development, and innovative service offering expansions. We were also successful in completing a range of strategic acquisitions including an adjacent brand, regional developers, and franchised units. We are thrilled with the value that the management team and Todd Leff have created for the Company’s shareholders, franchisees, and employees. We wish the team all the best in their next chapter with Harvest Partners.”
John Teza, CEO of Hand & Stone, commented, “We are grateful for LLCP’s support and guidance as their strategic insights, management-centric approach, and partnership contributed greatly to the expansion of our business. LLCP’s contributions will continue to be instrumental as we enter our next phase of growth.”
Todd Leff, Chairman and former CEO of Hand & Stone, commented, “We thank LLCP for their support and collaboration over the years. Leveraging their deep expertise in franchising, strategic analysis and best practices helped Hand & Stone continue its development as a premier, market-leading brand. LLCP was the ideal partner to help scale Hand & Stone and to guide our business through this period of tremendous growth.”
LLCP is one of the leading private equity investors in the franchising sector and the sale of Hand & Stone represents its fifth successful franchising exit since the start of 2021. In February of this year, LLCP sold its portfolio company Mountain Mike’s Pizza, and in 2021, LLCP sold three franchising portfolio companies including Nothing Bundt Cakes, Caring Brands International and HomeVestors.
North Point served as the lead financial advisor to Hand & Stone, with support from Harris Williams, and Kirkland & Ellis LLP served as legal counsel in connection with the sale.
About Levine Leichtman Capital Partners
Levine Leichtman Capital Partners, LLC is a middle-market private equity firm with a 38-year track record of investing across various targeted sectors, including franchising, business services, education and engineered products. LLCP utilizes a differentiated Structured Private Equity investment strategy, combining debt and equity capital investments in portfolio companies. This unique structure provides a less dilutive solution for management teams and entrepreneurs, while delivering growth and income with a significantly lower risk profile.
LLCP’s global team of dedicated investment professionals is led by nine partners who have worked at LLCP for an average of 19 years. Since inception, LLCP has managed approximately $12.9 billion of institutional capital across 15 investment funds and has invested in over 100 portfolio companies. LLCP currently manages $9.0 billion of assets and has offices in Los Angeles, New York, Chicago, Charlotte, Miami, London, Stockholm, The Hague and Frankfurt.