LONDON — Steiner Leisure Ltd., which owns beauty labels including Bliss, Elemis and La Thérapie, is set to be acquired by the Greenwich, Conn.-based private equity firm Catterton, for $65 a share in cash.
The total transaction value, including assumed net debt, is around $925 million, the two firms said in a statement last week. The statement noted that the $65 a share purchase price represents a 21.5 percent premium over Steiner Leisure’s 90-day weighted average closing share price on August 20.
Leonard Fluxman, president and chief executive officer of Steiner Leisure commented: “This transaction will provide Steiner Leisure with greater flexibility to focus on our long-term business initiatives and to improve our role as a global provider and innovator in beauty, wellness and education,” he said. “Catterton’s partnership is an important endorsement of our brands and the hard work and commitment of our team.”
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In addition to its skin-care and cosmetics brands, Steiner Leisure operates more than 200 day spas across the U.S. and Canada, alongside locations in resorts and on cruise ships, and runs schools for spa professionals. The firm is based in Nassau, The Bahamas and is currently listed on the Nasdaq exchange.
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J. Michael Chu, cofounder and managing partner of Catterton added: “We are excited about [Steiner Leisure’s] future and look forward to leveraging our retail and consumer expertise and network to help Steiner Leisure enhance its position as an industry leader,” he said, adding that Catterton will work “with the Steiner Leisure team and its…employees to drive growth an innovation…as we capitalize on the many growth opportunities in the industry.”
Steiner Leisure’s board of directors have “unanimously approved” the merger, the statement read, following the recommendation of a special committee of independent directors. The transaction is expected to close in the fourth quarter of 2015 or early 2016.
The transaction is subject to regulatory approvals and the approval of Steiner Leisure’s shareholders. It is not subject to a financing condition, and the merger provides for a go-shop period until Oct. 6, during which Steiner Leisure can solicit alternative offers.
Steiner Leisure will stand alongside Catterton’s existing fashion and beauty investments, which include jeweler John Hardy; an investment in activewear firm Sweaty Betty, skin care firm StriVectin and a stake in Italian cosmetics supplier Intercos.