Mystic Cures Pvt Ltd, a part of the $400 million Delhi-based Kassa India group, plans to acquire seven spas in Europe and Africa soon. The company will spend around Rs 654 crore (100 million euros) for acquisitions, a top executive told VCCircle. The funds for acquisition will be raised from private equity firms.
The company operates Mystic Salon & Spa, a spa chain which offers luxurious private full spa services and customised hair design and beauty services to its customers. It has been operating eight spas in the Delhi-National Capital Region.
Speaking to VCCircle, Siddharth Sankar, Director, Mystics Cures, said, “We are acquiring seven spas in Europe and Africa and the money will be invested by the private equity firms we have partnered with. The value of the trasaction will be somewhere around Rs 654 crore (100 million Euros).”
The deal will be finalised in the next one month period. Though the company did not share further details about the investors, it confirms that currently it has seven equity partners and is looking for more investors to raise fund for its expansion.
Sharing his thought about the global acquisition when the domestic market offers enough potential to grow, Sankar stated that Europe is already an established market for wellness industry and the proposed acquisition will help the company achieve heavy growth in this segment. Out of the seven spas which the company plans to acquire, three of them are in Europe while the other four are in Africa.
All the spas to be acquired are independent properties and the company will re-christen some of them as Mystic Salon & Spa, which is the brand name of Mystic Cures outlets. Mystic Cure has recently undertaken a new policy to operate only big size properties of over 4,000 square feet space and will exit from the smaller properties or convert them to franchise outlets. So the company will operate four spas from August 1, 2009, out of which three would be in Delhi and one in Ludhiana.
The company is targeting Rs 1-1.2 crore revenue per property in the current fiscal.
Kassa India group is a Delhi based financial services firm. The associated companies of Kassa India include Kassa Finvest Pvt Ltd, Kassa Holdings & Consultants Pvt Ltd and Kassa Financial Advisors Pvt Ltd.