New Company Spearheads First Ever Day Spa Industry Consolidation

—Through National Acquisition Strategy, Stonewater Establishes Itself As One of the Largest Day Spa Companies in U.S.—

For the first time, the day spa industry is undergoing a national consolidation. Stonewater, a newly formed spa management company based in New Haven, Conn., announced today that it is in the process of acquiring existing, successful day spas that are profitable market leaders in their respective regions and consolidating them under the name Stonewater, a new national brand. Stonewater currently owns 13 spas and is growing quickly and significantly making it one of the largest day spa companies in the U.S.

"The spa industry is a $10 billion a year business with no leading national players to date," says Francis X. Acunzo, a 20-year veteran of the spa and hospitality industry and Stonewater's founder and chief executive officer. "With approximately 7,000 day spa establishments in the U.S., it is an extremely fragmented industry consisting of individual spa owners with."

He continues, "Instead of trying to create a 'one-type-fits all' spa brand, we saw a tremendous opportunity to acquire existing and successful day spas, integrate signature Stonewater elements and unify them under one name to create the largest and finest collection of day spas across the country."

Currently, Stonewater owns and operates spas located in Atlanta, Chicago, Miami, Boston, Washington D.C. area; Raleigh, NC, and Greenwich, Conn.

Stonewater was founded and established in 2001 by Acunzo and Sports Capital Partners, a $215 million private equity firm, based in New York City, focused on investing in sports and leisure related businesses. Both Acunzo and Sports Capital Partners shared a vision to build a collection of the nation's top spas. With a $15 million financial commitment from Sports Capital Partners coupled with Acunzo's extensive spa experience and expertise, Stonewater took form.

The Stonewater acquisition team evaluates at a variety of factors when researching the purchase of potential day spas.

Type of facility
Stonewater is currently acquiring only stand-alone day spas that have a salon component, in addition to those day spas that do not offer hair services. At this time, Stonewater is not purchasing salon-only locations.

Location
Stonewater's goal is to acquire day spas in top metropolitan markets. Current markets of interest are Boston, New York metro area including Westchester County, NY; Nassau County, NJ and other New Jersey suburbs; Philadelphia, Washington D.C., Atlanta, Miami, Raleigh-Durham and Charlotte, NC. Stonewater is also looking westward to Chicago and St. Louis.

Revenue
Stonewater purchases spas that generate $1 million or more in revenue per year, and make at least $500 per square foot in service revenue.

Design
Stonewater is interested in locations that have an upscale look and feel that complement existing spas in the Stonewater portfolio.

Following the purchase of a spa, Stonewater will integrate a variety of signature Stonewater treatments and other defining elements to existing services offered at each location. Stonewater is currently finalizing the details of the new brand elements which will be rolled out in all existing and newly acquired spas in the coming months.

For more information on Stonewater visit www.stonewater.com or contact Stephanie Loeber at 203-785-9205 (phone), 203-785-9191 (fax) or e-mail at sloeber@stonewater.com

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