Levine Leichtman Capital Partners (“LLCP”), a Los Angeles-based private equity firm, announced today that it has partnered with management to complete the acquisition of Hand and Stone Franchise Corp. (“Hand and Stone” or the “Company”).
Founded in 2004, Hand and Stone is a market leading franchisor in the massage and facial spa industry with over 200 locations across the U.S. and Canada. The Company’s franchisees offer a comprehensive range of massage, facial and hair removal services along with complementary product offerings. Hand and Stone is headquartered in Hamilton, New Jersey.
Hand and Stone is the fifth investment from Levine Leichtman Capital Partners Fund V, L.P. According to Lauren Leichtman, Co-Founder and CEO of LLCP, “We are excited to partner with Todd Leff and the rest of the management team who have led the tremendous growth of Hand and Stone, and solidified the Company’s position as a market leader in the industry. With its nationwide network of franchisees and strong brand recognition, the Company is uniquely positioned to benefit from the continued growth in the massage and facial spa industry. We look forward to our partnership with the Company to generate another successful outcome.”
Todd Leff, Hand and Stone’s Chief Executive Officer, and his management team will retain significant ownership in the Company and will continue to lead Hand and Stone. Regarding the transaction, Todd Leff commented, “Having a partner with a long history of successfully investing in franchise businesses was attractive to us in selecting our new financial partner. LLCP’s franchise expertise and resources will be critical in helping us move into our next phase of growth and in supporting our franchisees. I expect this partnership will contribute meaningfully to the continued development of Hand and Stone.”
Hand and Stone was advised by Lazard Middle Market LLC and Blank Rome LLP. LLCP was advised by Kirkland & Ellis LLP.
April 14, 2015