Elizabeth Arden Invests in Red Door Spa Holdings

Elizabeth Arden, Inc. licenses the trademarks for the Elizabeth Arden and Red Door brand names to Red Door Spa Holdings, which owns and operates 31 Elizabeth Arden Red Door Spas.Red Door Spa Holdings, which also owns and operates 18 Mario Tricoci Hair Salons in the Chicago metro area, had combined revenue of approximately $150 million in fiscal 2011.

“Our intent in partnering with John Anderson and North Castle Partners is to accelerate the growth of the spa business in parallel with the growth of the Elizabeth Arden brand and the Elizabeth Arden brand repositioning,” said E. Scott Beattie, chairman, president and CEO of Elizabeth Arden, Inc. “The collaboration between Elizabeth Arden, Inc., John Anderson and North Castle brings the relevant product, operational management and financial skills to maximize the growth potential and profitability of the Red Door Spa business.The equity of the Elizabeth Arden brand is rooted in its Red Door Spa heritage.We intend to leverage this unique association to drive both Elizabeth Arden product sales and the Red Door Spa business.”

Elizabeth Arden, Inc. and J.H. Anderson Holdings have an option to acquire the remaining interest in Red Door Spa Holdings.The investment will be recorded as a minority investment by the company and, therefore, it will not have a material impact on the company’s financial results, the company said.

“We believe the opportunity to align our economic interests and to leverage Elizabeth Arden, Inc’s. corporate resources and marketing capabilities, particularly in expanding product sales, will strengthen Red Door Spa Holdings’ leadership position in the day spa market,” added

Alison Minter, North Castle Partners managing director.