Miami, Florida – Trivest Partners, L.P. (“Trivest Partners”) through its affiliated partnerships, today announced that it has acquired the assets and operations of Herbal Magic Systems International Inc. and its affiliates (“Herbal Magic” or the “Company”). Herbal Magic, headquartered in London, Ontario, is Canada’s leading franchisor of personal health counseling centers, primarily for weight loss.
Herbal Magic has 228 systemwide centers, of which 220 operate under Herbal Magic® in Canada and 8 operate under Nutri Magic® in the United States. The Company opened its first personal health counseling center in London, Ontario in 1996, which remains one of the only nine corporate owned centers in the system. Since then, the Company has pursued a disciplined franchising strategy and has opened an average of over 40 franchised centers in each of the past three years, experiencing over 10% same center sales growth in each of the past three years as well. With another 40 new franchised centers in development, the Company has grown to systemwide center revenue of over CAD $60 million.
Peter “Chip” Vandenberg, Jr., a Trivest Partners Managing Director, said “Despite years of medical research and billions of dollars expended, there is still no universal solution for weight loss. Consequently, behavior modification such as the Herbal Magic program has proven to be an effective way to lose weight and keep off the pounds.” The Herbal Magic program is centered on private, one-on-one sessions between a client and an Herbal Magic counselor approximately three times per week in a center. The Herbal Magic program is supported by proper nutrition, adequate exercise and herbal supplements. Additional information on Herbal Magic and Nutri Magic is available on the Company’s websites: www.herbalmagic.ca or www.nutrimagic.com.
In addition to operating in a sizeable industry with attractive demographics, “Chip” went on to say that “Herbal Magic’s characteristics are consistent with Trivest’s track record of acquiring market leaders that are rapidly growing and generating strong cash flow. The Company has a unique weight loss program, a readily identifiable brand and a proven franchising strategy. Furthermore, Herbal Magic has a diversified geographic base of growing, profitable, satisfied and stable center owners from which to further penetrate Canada as well as accelerate its expansion into the United States. We look forward to building on the Company’s track record of success.”
Trivest Partners was introduced to Herbal Magic by Spara Capital Partners, Inc. (“Spara Capital”), an Oakville, Ontario based entrepreneurial solutions company. Jason Sparaga, President of Spara Capital, said “We thought Trivest Partners could expand the breadth and scope of the Company’s current operations given the strength of their investments in other highly branded companies like Aero Products, Brown Jordan and Directed Electronics.”
Trivest Partners is a Miami, Florida based private investment firm and leading provider of equity for middle market corporate acquisitions, recapitalizations and growth capital financings. Since its founding in 1981, Trivest Partners has sponsored more than 115 acquisitions and recapitalizations, totaling in excess of $2.4 billion in value. For additional information, please visit www.trivest.com.