Riata Capital Group has made an investment in Salon Republic, an operator of salon studio suites and a provider of support services to beauty care professionals.
Salon Republic currently operates 24 salon suite locations in seven major markets in California, Colorado, Texas, and Washington, which support more than 2,500 beauty care professionals (BCPs). Within its salon locations, Salon Republic offers BCPs their own individual studios including single studios (accommodates 1-2 stylists), artist studios (accommodates 2-3 stylists), and master studios (accommodates 3 or more stylists).
Salon Republic supports its BCPs with full-time on-site management, a selection of beauty products, complimentary linen services, and educational seminars. Salon Republic, founded in 2000, is led by founder and CEO Eric Taylor and is headquartered in Woodland Hills, California.
Riata’s investment in Salon Republic was made in partnership with Mr. Taylor and members of the company’s senior management team and will be used to accelerate the company’s geographic expansion.
“We have been impressed by the differentiated platform that Eric Taylor and the Salon Republic team have built, developing the business into one of the leading providers of salon suites and value-added services to BCPs in their markets,” said Barron Fletcher, a managing partner of Riata. “As innovators in their space since 2000, Eric and his team have capitalized on strong demand from BCPs for the salon-suite model and consistently demonstrated their commitment to helping BCPs grow their business outside traditional salon formats.”
“We are excited to have Riata as our investment partner,” said Mr. Taylor. “We have had the fortune of collaborating with them on the business for a number of years prior to this investment and believe they are one of the strongest and most-successful investors in consumer platforms in private equity today.”
“We are excited to partner with such a well-positioned and well-managed platform,” said Jeff Fronterhouse, a managing partner of Riata. “We believe Eric and the Salon Republic leadership team have built an impressive business with a differentiated service offering and a strong economic model. Salon Republic locations are designed to meet the strong secular demand from BCPs seeking the independence, autonomy, and economic advantages of having their own business in upscale environments with value-added services offerings and stimulating overall beauty care ecosystems. We expect to continue to deploy additional capital in the platform to support the company’s continued organic expansion along with pursuing strategic add-on acquisitions.”
Riata Capital Group makes control and non-control equity investments of $25 million to $150 million in companies that have from $5 million to $30 million of EBITDA and total enterprise values of $25 million to $300 million. Sectors of interest include business services, consumer, and healthcare services. Dallas-headquartered Riata was founded in January 2015 by Jeff Fronterhouse (co-founder of Brazos Private Equity Partners) and Barron Fletcher (founded of Parallel Investment Partners).
© 2022 Private Equity Professional | December 20, 2022
