NASSAU, The Bahamas, Oct. 17, 2011 (GLOBE NEWSWIRE) – Steiner Leisure Limited (Nasdaq:STNR), today announced that it has entered into an agreement for the acquisition of all of the issued and outstanding capital stock of Ideal Image Development, Inc. (“Ideal Image”). Ideal Image is a leader in the important and growing consumer healthcare category of laser hair removal.
The company has provided more than two million treatments since 2001 and is uniquely positioned as the only national provider focused exclusively on laser hair removal. Ideal Image has a nationwide network of 68 treatment centers (17 are operated by franchisees) across 21 states, delivering a branded medical experience in a convenient upscale retail setting. The two current Co-CEOs of Ideal Image have agreed to continue in those roles after the closing of the transaction.
This transaction, which is expected to be $0.20 to $0.25 accretive to earnings for 2012 and has a purchase price of $175 million payable in cash at closing, and will be paid from existing cash and through borrowings under the new credit facility described below.
Closing of the transaction, which is anticipated to take place in November 2011, is subject to conditions similar to those in other transactions of this type, including, among others, regulatory approval. Absent satisfaction of certain conditions to close, each party may terminate this transaction. In the event of a termination of the agreement by a party other than as permitted by the agreement, a break-up fee of $8.75 million would be payable by such party.
Leonard Fluxman, President and Chief Executive Officer of Steiner Leisure, said, “Ideal Image has been a leader in the growing industry of laser hair removal, providing customized treatments by highly trained, experienced practitioners to its clients for over a decade. Laser hair removal represents an approximately $2.1 billion market and is experiencing rapid growth supported by positive demographic, cultural and lifestyle trends. The effective and convenient results offered by Ideal Image complement our philosophy of enhancing the quality of life of our guests by providing a range of beauty and body treatments of the highest caliber in our facilities. We are very excited to have the opportunity to integrate this new field of personal care into our operations and to further diversify the array of treatment options we currently offer our clients.”
