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European Wax Center Raises $ 180 Million IPO

European Wax Center, a franchisor and retailer of wax services and products owned by private equity firm General Atlantic, was valued at $ 1.2 billion on its Nasdaq debut.

THE: Founded in 2004 by siblings David and Joshua Coba, the European Wax Center (EWC) is the largest and fastest growing out-of-home wax service provider in the United States by number of centers and system-wide sales. Each location also sells 31 pre- and post-treatment products in the skin care, body and eyebrow categories.

IN YOUR OWN WORDS: David Coba described the company’s difference as being based on experience. “The first wax is free because we firmly believe that when you experience EWC, you’ll keep coming back. Our experience is based on three pillars. First, we have an exceptional training process for our beauticians. Second, we have a proprietary wax called Comfort Wax that is specifically designed to stick to your hair, not your skin. Third, it’s the overall consistency of the experience. You can go to an EWC in one of our 808 locations, and those centers all work consistently and efficiently, whether in Manhattan or Omaha, Nebraska. “

“We don’t have a crowded market today. We have five corporate centers and the rest are franchisees so we’re really asset-light,” added David.

DETAILS:

  • European Wax Center is listed on Nasdaq on a $ 180 million IPO valued at $ 1.2 billion and traded under the symbol EWCZ.
  • In 2019 and 2020, the company had system-wide revenues of $ 687 million and $ 469 million, respectively, on its strong franchise network.
  • The company currently operates 808 locations in 44 states. Of these locations, 803 are franchise centers operated by franchisees and five are company owned.
  • EWC centers achieve AUVs of $ 1 million and 4-wall EBITDA margins of more than 20% on maturity.
  • EWC is confident that it will almost quadruple the number of its centers to over 3,000 over the next 15 years and add 60 to 80 locations annually.
  • Morgan Stanley, BofA Securities, Jefferies, Citi, Guggenheim Securities, Truist Securities and Baird acted as joint bookrunners on the transaction.
  • In 2018 General Atlantic took over a majority stake in the European Wax Center.

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