Levine Leichtman Capital Partners (LLCP) has acquired Hand and Stone Franchise Corp., a franchisor of massage and facial spas. Hand and Stone is the fifth investment made by Levine Leichtman’s fifth fund.
Founded in 2004, Hand and Stone has over 200 locations across the US and Canada. The company’s franchisees offer massage, facial and hair removal services along with other services such as aroma therapy and hot towel exfoliation. Hand and Stone is headquartered near Trenton in Hamilton, NJ (www.handandstone.com).
Todd Leff, Hand and Stone’s Chief Executive Officer, and his management team will retain an equity interest in the company and will continue to lead Hand and Stone.
“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,” said Lauren Leichtman, Co-Founder and CEO of LLCP. “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.”
Levine Leichtman manages approximately $7 billion of capital through private equity partnerships, distressed debt and leveraged loan funds. The firm is currently making new investments through Levine Leichtman Capital Partners V, LP; Levine Leichtman Capital Partners SBIC Fund, LP; and Levine Leichtman Capital Partners Private Capital Solutions II, LP. The firm is based in Los Angeles with offices in Chicago, Dallas, New York, London and The Hague (www.llcp.com).
“Having a partner with a long history of successfully investing in franchise businesses was attractive to us in selecting our new financial partner,” said Mr. Leff. “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.”
© 2015 PEPD • Private Equity’s Leading News Magazine • 4-15-15