Sentinel Capital Partners has acquired Massage Envy LLC, a Scottsdale, Ariz.-based provider of therapeutic massage services. No financial terms were disclosed.
PRESS RELEASE
Sentinel Capital Partners, a private equity firm that invests in promising smaller middle-market companies, today announced it has acquired Massage Envy, LLC. Based in Scottsdale, Arizona, Massage Envy is the nation’s largest provider and franchisor of therapeutic massage services. Financial terms of the transaction are not being disclosed.
Massage Envy offers professional and affordable therapeutic massage services to consumers with busy lifestyles, offering convenience, high quality, and excellent value. Since its founding in 2002, Massage Envy has established itself as the leading franchisor of massage therapy services in the United States, with more than 600 clinics operating in 42 states generating more than $450 million in systemwide sales. With a highly trained and committed workforce of more than 10,000 employees, Massage Envy offers a range of services that include full-body and partial-body massage therapies and facial skin treatments.
Massage Envy operates through a membership model, giving the company and its franchisees the benefit of recurring, predictable revenues. In 2009, Entrepreneur magazine’s Franchise 500® ranked Massage Envy as one of the nation’s 20 “Fastest Growing Franchises” in addition to #1 in the “Massage Services” category.
“We are very proud of Massage Envy’s market leadership and are excited about the growth prospects for our convenient, high-quality, competitively priced therapeutic massage and spa services,” said David Humphrey, CEO of Massage Envy. “Sentinel has a proven record of helping franchise businesses grow and build value, and with Sentinel as our partner, we possess the strategic and financial resources to capitalize on our numerous growth opportunities,” added Mr. Humphrey.
“At Sentinel, we aim to form strong partnerships with talented management teams of businesses that are market leaders in industries we know well,” said John F. McCormack, a co-founder and senior partner at Sentinel. “We have been investing in multi-unit and franchising businesses for more than 20 years, and we are very excited to be partners with Massage Envy’s highly capable management team.”
According to the American Massage Therapy Association, the many powerful benefits of therapeutic massage include reducing fatigue, lower back pain, and post-operative pain; boosting the body’s immune system; decreasing the symptoms of carpal tunnel syndrome; lowering blood pressure; and diminishing headache frequency.
“Massage Envy has taken an exclusive, high-priced service and made it affordable to and accessible for the general public. Today, millions of Americans find therapeutic massage to be an invaluable component of their wellness,” said Jim Coady, a partner at Sentinel. “With more than 200 additional franchise licenses in development and more than 680,000 Massage Envy members nationwide, we are very excited about the company’s prospects to continue to expand its geographic footprint and grow its delivery system.”
Sentinel has invested in several franchise and multi-unit businesses, including Border Foods, a leading franchisee in the Taco Bell system; Castle Dental, a leading dental clinic operator in the Sunbelt; Cottman Transmission Systems, the nation’s second-largest franchisor of transmission repair depots; Falcon Holdings, one of the largest franchisees of Church’s Chicken restaurants; Interim Healthcare, the nation’s largest provider and franchisor of home healthcare services; Metro Dentalcare, a leading dental clinic practice operator in the Minneapolis/St. Paul area; and Southern California Pizza Company, a 224-unit Pizza Hut franchisee operating in the greater Los Angeles market.
About Sentinel Capital Partners
Sentinel Capital Partners specializes in buying and building smaller middle- market companies in the United States and Canada in partnership with management. Sentinel targets consumer products, food and restaurants, franchising, manufacturing, and service businesses. Sentinel invests in management buyouts, recapitalizations, corporate divestitures, and going-private transactions of established businesses with EBITDA of between $5 million and $35 million. For more information about Sentinel, visit www.sentinelpartners.com.
About Massage Envy
Massage Envy, LLC, based in Scottsdale, Arizona, is the largest provider and franchisor of therapeutic massage and spa services in the United States. Massage Envy clinics are dedicated to providing professional and affordable therapeutic massage services to consumers with busy lifestyles at convenient times and locations. Massage Envy Spa is its newest concept, featuring Murad® facial treatments and therapeutic massages. Founded in 2002, Massage Envy franchises more than 600 clinics in 42 states, with new locations opening every month. For more information, visit www.MassageEnvy.com.
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