Information on the Target

Exaltare Capital Management, LLC, a Boston-based private equity firm specializing in franchise and multi-unit businesses, has acquired UKW Holding Company and its affiliates, known as Uni K Wax. Located in Aventura, Florida, Uni K Wax is a prominent franchisor and operator of waxing studios, boasting 32 franchised locations alongside 2 corporate ones across Florida, New York, New Jersey, and Texas. The company is renowned for producing a proprietary all-natural elastic wax.

As part of this acquisition, Heather Elrod, former CEO of Amazing Lash and Managing Partner of Conscious Capital Growth, will assume the role of Executive Chair at Uni K Wax. The founder, Noemi Grupenmager, who established the company in 1993, will continue to play an integral role while remaining a significant shareholder.

Industry Overview in the Target’s Specific Country

The waxing industry in the United States has seen steady growth as a result of increasing consumer demand for personal grooming services. This growth is fueled by a rising focus on aesthetic appearances among diverse demographics, leading to a robust market that caters to both genders. Major cities like New York and Los Angeles have particularly embraced such personal care industries, creating vast opportunities for franchise-based models.

Florida, New York, New Jersey, and Texas house a significant portion of the waxing service market. In these states, consumers exhibit a strong preference for specialized waxing services, promoting brands that offer high-quality products and exceptional customer experiences. The health and wellness trend continues to influence consumer behavior, further propelling the waxing industry's momentum.

As the demand for personal grooming rises, franchising in the beauty and wellness sector remains an attractive investment opportunity. Investors are eager to engage with emerging brands that combine innovative product offerings with proven business models, ensuring scalability and operational success.

The waxing services market, characterized by its relatively low barriers to entry, is becoming increasingly competitive. The introduction of proprietary products and a focus on customer loyalty have become essential components for brands seeking to establish themselves in this lucrative landscape.

The Rationale Behind the Deal

Exaltare's acquisition of Uni K Wax aligns with its strategy of empowering franchisees and enhancing measurable wealth generation. Omar Simmons, Exaltare's Managing Partner and Founder, emphasized the firm's commitment to supporting franchisee success while leveraging Noemi's vision and Heather's expertise in scaling franchise operations.

The decision to invest in Uni K Wax represents Exaltare's first franchisor engagement following previous successful investments in franchisee platforms. The combination of a well-established brand like Uni K Wax and Exaltare's operational prowess is aimed at maximizing growth opportunities and fortifying the franchise system.

Information About the Investor

Exaltare Capital Management is a private investment firm dedicated to franchise and multi-unit investments, characterized by its deep operational knowledge and extensive private equity experience. The firm primarily invests in founder-led businesses generating $2 to $25 million in EBITDA.

Since its inception in 2012, Exaltare has successfully completed 17 platform and add-on transactions within the franchising sector, impacting over 250 locations and generating upwards of $900 million in capital. Their strategy focuses on collaborating closely with portfolio companies to drive value while allowing management autonomy in day-to-day operations.

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This acquisition appears to be a promising investment for Exaltare Capital Management. By acquiring a brand with a solid reputation and loyal customer base, they have the potential to leverage their industry knowledge to accelerate Uni K Wax's growth.

The imminent expertise brought by Heather Elrod, particularly her previous success in scaling Amazing Lash from 70 to 200 locations, presents a strong foundation for instituting effective strategic initiatives and franchise development.

Moreover, the waxing industry’s dynamics suggest robust continued demand for innovative and customer-centric service providers, positioning Uni K Wax favorably within the market. With Exaltare's guidance, the company is well-poised to capitalize on the industry’s growth trajectory.

Overall, this deal represents a strategic alignment of shared vision and operational insight, suggesting that the investment could yield significant returns as both parties work collaboratively towards enhancing Uni K Wax's franchise system.

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