Elizabeth Arden partnered with J.H. Anderson Holdings and its principal John Anderson, to collectively invest the amount for a minority interest in Red Door Spa Holdings; the operator of the Elizabeth Arden Red Door Spas and the Mario Tricoci Hair Salons privately owned by North Castle Partners.
Accelerate spa business growth
“Our intent in partnering with John Anderson and North Castle Partners is to accelerate the growth of the spa business in parallel with the growth of the Elizabeth Arden brand and the Elizabeth Arden brand repositioning,” says Elizabeth Arden president and CEO, E. Scott Beattie.
“The collaboration between Elizabeth Arden, John Anderson and North Castle brings the relevant product, operational management and financial skills to maximize the growth potential and profitability of the Red Door Spa business.”
As a result, the New York-based company intends to leverage the deal to drive both Elizabeth Arden product sales and the Red Door Spa business.
Option to acquire
In addition, Elizabeth Arden and J.H. Anderson Holdings have an option to acquire the remaining interest in Red Door Spa Holdings.
“As one of the most highly recognized names in the nearly $50 billion global spa industry, I look forward to leveraging this brand name in expanding the business,” adds John Anderson.
Red Door Spa Holdings currently owns and operates 31 Red Door Spas in freestanding locations and resort and hotel properties in the United States and 18 Mario Tricoci Hair Salons in the Chicago metro area, and had combined revenue of approximately $150 million in fiscal 2011.
Elizabeth Arden notes that the investment will be recorded as a minority investment by the company and, therefore, it will not have a material impact on its financial results.