New Haven, Conn., Sept. 5, 2002 — For the first time, the day spa industry is undergoing a national consolidation. Stonewater, a newly formed spa management company based in New Haven, Conn., announced today that it is in the process of acquiring existing, successful day spas that are profitable market leaders in their respective regions and consolidating them under the name Stonewater, a new national brand. Stonewater has acquired and currently owns 11 spas and is growing quickly and significantly making it one of the largest day spa companies in the U.S.

"The spa industry is a $10 billion a year business with virtually no leading national players to date," says Francis X. Acunzo, a 20-year veteran of the spa and hospitality industry and Stonewater's founder and chief executive officer. "With more than 7,000 day spa establishments in the U.S., it is an extremely fragmented industry consisting of individual spa owners."

He continues, "Instead of trying to create a 'one-type-fits all' spa brand, we felt there is a tremendous opportunity to acquire existing and successful day spas, integrate signature Stonewater elements and unify them under one name to create the largest and finest collection of day spas across the country."

The Stonewater team evaluates a variety of factors when researching the acquisition of potential day spas. Stonewater is currently acquiring stand-alone day spas most of which offer a salon component. Stonewater's goal is to acquire day spas in major metropolitan market and targets spas that produce $1.5 million or greater in annual revenue per year. Stonewater is interested in upscale locations to complement existing spas in the Stonewater portfolio.

Since executing its strategy at the end of 2001, Stonewater had an annualized revenue of $1.5 million. By December 2002, Stonewater is expected to have an annualized revenue of $33 million.

The Stonewater portfolio currently consists of Le Pli in Cambridge, Mass.; Jolie in Atlanta, Ga., Raleigh, N.C. and Bethesda, Md.; Maximum Image Salon and Day Spa in Concord, Mass.; Roxsan Day Spa in Kensington, Md.; Spring Spa of Renewal in Greenwich, Conn.; Sage Club Spas in Wellesley and Watertown, Mass.; Aruj Salon & Spa in Miami, Fla.; and Kiva in Chicago, Ill.

Stonewater will integrate a variety of signature Stonewater treatments and other defining elements to existing services offered at each location. Stonewater is currently finalizing the details of the new brand elements which will be rolled out in all existing and newly acquired spas in the coming months.

Stonewater was founded and established in 2001 by Acunzo and Sports Capital Partners, a $215 million private equity firm, based in New York City, focused on investing in sports and leisure related businesses. Both Acunzo and Sports Capital Partners shared a vision to build a collection of the nation's top spas. With a $15 million financial commitment from Sports Capital Partners coupled with Acunzo's extensive spa experience and expertise, Stonewater took form.

For more information on Stonewater visit or contact Stephanie Loeber at 203-785-9205 (phone), 203-785-9191 (fax) or e-mail at [email protected]