New York-based private equity firm Falconhead Capital has acquired a majority stake in Toronto-based Premier Salons for $100 million (€83 million).
The firm will merge the salon and spa chain with existing portfolio company Stonewater Spas into single entity called Premier, according to the statement. The new company will be one of the largest independent upscale spa and salon companies in North America, with combined revenues of more than $125 million.
In the statement, Falconhead chairman and chief executive officer David Moross said the transaction culminates the firm’s “efforts over the past two-plus years to create a major spa and salon platform that we could build into North American’s leading independent spa and salon company.” The $53 billion North American spa and salon market is highly fragmented and rapidly growing, he added.
Falconhead Capital, which operates out of its Sports Capital Partners fund, was established in 1998 to provide long-term capital for leisure, lifestyle, media and sports business. In February, the firm acquired National Powersport Auction, a $100 million company specialising in auctioning repossessed, recovered and salvaged motorcycles, all-terrain vehicles and personal watercraft exclusively to powersport dealers.