Large Multi-Unit Sola Salons Franchisee Partners for 75+ Unit Development

PHILADELPHIA, March 30, 2022  /PRNewswire/ -- Three20 Capital Group, Geneva Glen Capital & Stonehenge Partners (Three20, GGC & Stonehenge) are pleased to announce a major investment in Eleven Eleven Holdings, developer and owner of Sola Salon Studios franchise locations. Sola Salons is the leading provider of salon suites in the US. The group is pleased to announce new multi-unit development agreements in Pennsylvania, Southern New Jersey and Tennessee. Eleven Eleven will continue to invest in their 37 currently open Sola locations while committing capital to grow to over 75 units in the next five years creating opportunities for over 1,500 additional Sola Pros. The company also intends to grow through acquisitions of established Sola locations in other markets.

The Eleven Eleven Holdings leadership team of David Raduziner, Steve Breuner and Bo Breuner, have been franchisee veterans in the Sola Salon system since 2008 developing the successful 37 units. Raduziner will serve as CEO with Steve Breuner as CMO. "We love the management of Eleven Eleven and Raduziner & the Breuners are exceptionally suited to continue to lead the company," said Adam Schecter, Partner with GGC.  

"We are thrilled to have the investment and backing of Three20, GGC & Stonehenge to more than double the size of the company and lend valuable strategic support as we continue our explosive growth," said Raduziner. "Sola Salons created the category," said Breuner. "Sola is not only a trailblazer, but best in class organization that we've been proud to be a part of. "We're looking forward to reaching over 75 units over the next five years".

Three20 Capital Group is led by longtime multi-unit franchisees and franchisors Todd Recknagel and Kristi Mailloux. Recknagel & Mailloux are currently Operating Partners in the largest Massage Envy multi-unit franchisee in the country which they helped grow from 7 locations to over 90 clinics today. Recknagel says, "Over the years, my wife Kristi and I have participated in a number of very successful investments in franchising and we love the Sola franchise model." Mailloux said, "We have been blessed to see tremendous growth and hope to bring franchise best practices to Eleven Eleven."   Recknagel added, "Having a franchise dream team like Raduziner and the Breuners will unleash unlimited growth as well." Recknagel will serve as Board Chair.

"We believe that our team will be leaders within the brand bringing depth in experience, service, and culture building." Stonehenge Partner, Pete Davies, added "We are really looking forward to helping improve the lives of over 2,500 Sola Pros by the time we build our organization." Fifth Third Securities, Inc., served as financial advisor to Eleven Eleven.

"We are excited to see one of our strongest franchisees joining forces with capital partners like Three20 Capital, Geneva Glen Capital and Stonehenge Capital, who will give them the stability and strength to continue their expansion. These groups bring significant franchise experience, and we look forward to this new relationship," said Christina Russell, CEO of Sola Salons.

In 2004, Sola Salons was established with the opening of its first location in Denver, Colorado. Now with more than 600 locations open in the U.S., Canada and Brazil, Sola is proud to offer 18,000+ independent beauty professionals the freedom and benefits of salon ownership without the risk and overhead of opening a traditional salon. Its innovative salon model empowers hairdressers, estheticians, nail techs and other like-minded professionals to take control of their lives and their careers. Sola provides beauty professionals with beautiful, fully equipped salon studios alongside the support and tools they need to launch their salon business in no time. For more information, please visit www.solasalons.com.

Three20 Capital Group is a private equity firm making acquisitions and investments in privately held middle market companies. They have a depth of experience in franchising, distribution, energy efficiency and multi-unit businesses. A sampling of Brands they have partnered with include Mr. Handyman, Massage Envy, Take 5 Oil change, Molly Maid, Office Pride, Quatrro Business Services and AM Conservation Group. www.Three20group.com

Geneva Glen Capital is a Chicago-based private equity firm that invests in proven private companies with leading market positions, significant growth potential, and stable cash flows.  GGC makes control investments and targets companies headquartered in the U.S. or Canada with EBITDA between $2 million and $20 million. The firm works closely with management teams to establish and execute on a clearly defined value creation and growth plan. The principals of GGC have extensive private equity experience and a funding structure that provides the ability to be flexible, creative and, if appropriate, long-term investors.

Stonehenge is an Ohio-based private equity firm serving the lower middle market. Founded in 1999, Stonehenge has a long history of partnering with leading entrepreneurs and managers who are focused on building winning teams, accelerating growth, and creating shareholder value. Stonehenge provides flexible capital that meets the needs of all stakeholders, including majority equity, minority equity, debt, and combinations thereof. Stonehenge has raised more than $1 billion of committed capital and is currently investing out of its fifth institutional fund.

David Raduziner CEO, Eleven Eleven Holdings: [email protected]

Andriana Gavrilovic Sola Corporate: [email protected]

Todd Recknagel: [email protected]

SOURCE Three20 Capital Group