Sentinel Capital Partners Acquires Nation's Largest Provider of
Therapeutic Massage Services
ENTREPRENEUR MAGAZINE NAMES MASSAGE ENVY ONE OF THE 20
FASTEST-GROWING FRANCHISES IN 2009
New York, NY, January 4, 2010
- Sentinel Capital Partners, a private equity firm that
invests in promising smaller middle-market companies, 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 postoperative 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 middlemarket 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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Contact
Dallas Bennewitz
(480)366-4130
dbennewitz@massageenvy.com
Lauren Pokras
480-998-2600 ext. 542
lpokras@lavidge.com
Elle Shelley
480-998-2600 ext. 551
eshelley@lavidge.com