Eyelash extension business Amazing Lash Studio is looking for a strategic partner.
The lash-extension franchiser has about 160 locations in the U.S. The business was founded in 2010 by Edward and Jessica Le, and provides semi-permanent lash extensions through a membership model. Members, for example, can pay $90 for a full set of lash extensions, while non-members pay around $250. The business has a patented application process and products. It also has supply-side operations.
Amazing has about 89,000 members. One-year-old franchises average about $743,000 in gross revenue, while two-year-old franchises average about $1.4 million in gross revenue, according to the company.
Amazing hasn’t hired an investment bank, and is conducting the process internally, according to Heather Elrod, president and chief operating officer.
“It will be a complete sale,” Elrod said. “A full ownership transaction to either a strategic buyer or a private equity firm.” Looking forward, she expects the company’s growth to come from more aggressive domestic expansion as well as international operations. The business has 300 franchisees set up, and about 185 doors are expected to be open by the end of 2017, she noted.
About 82 percent of Amazing’s services are provided to its members, and 62 percent of guests are first-time extension users, Elrod said.
“The timing is pivotal for someone else to come in and take the company to the next level,” Elrod said. She plans to stay on with the business, but the founders do not.
“With our company’s strong franchisee base, passionate employees, and talented management team in place, Jessica and I are confident that now is the right time to align with a strategic partner that possesses the financial and operational expertise to take Amazing Lash Studio to the next level,” said Edward Le, chief executive officer.
“After years of pouring our hearts and obsessive entrepreneurial passion into this business, it has matured to the point that we can finally devote the time with our three young children that they deserve. We are very fortunate now to be able to do so. As such, we believe it’s in the best interest of our franchisees, employees and the overall business to pass control of Amazing Lash Studio to a partner who can maximize its value and ensure that Amazing Lash Studio’s exceptional model, product and consumer experience are upheld for decades to come.”
Amazing is not the only single-service business to hit the market. Drybar has expanded in the U.S., with about 85 locations and its own product line. That business is backed by two private equity firms, Castanea Partners and Roark Capital, and is said to be on track to do upwards of $110 million in sales for 2017.