Stonewater Spas Merges with Premier Salons

On June 18, 2004, Falconhead Capital, a New York private equity investment firm specializing in leisure, lifestyle, media and sports-related businesses, acquired a majority stake in Premier Salons in Toronto, one of the largest privately-owned salon and spa chains in North America. The operations of Stonewater Spas, an existing Falconhead portfolio company, was merged with Premier in a transaction with a combined enterprise value of approximately $100 million. The value of the transaction is undisclosed.

The combination of Premier and Stonewater will establish the combined enterprise, which will be known as Premier, as one of the largest independent upscale spa and salon companies in North America, with combined revenues of more than $125 million.

CapitalSource Finance LLC provided a senior debt facility in connection with the transaction and has co-invested in the transaction alongside Falconhead.

Premier Salons was represented by Goodmans, with a team that included Dale Lastman and Mark Surchin (corporate); and by Aird & Berlis, with a team that included Jack Bernstein and Henry Chong (tax) and Lisa Marcuzzi (corporate).

Falconhead Capital was represented by Weil, Gotshal & Manges in New York with a team that included Mike King, Jeff Hopkins, Joseph Wyatt and Ryan Gallagher (corporate) and Thierry Valat De Cordova and Brielle Weisberg (lending).

CapitalSource Finance LLC was represented by Patton Boggs in Dallas, Texas, with a team that included Kate Moseley and Jasa Gitomer.

Lawyer(s)

Jasa Gitomer Thierry Valat De Cordova Lisa M. Marcuzzi Dale H. Lastman Henry Chong Mark Surchin Ryan P. Gallagher Jack Bernstein Michael A. King Jeff Hopkins Kate Moseley

Firm(s)

Goodmans LLP Aird & Berlis LLP Weil, Gotshal & Manges LLP Patton Boggs