News from January......"The initial two multi-location salon targets have been identified, and the Company expects to complete the acquisition of both in the first half of 2017."
Green Endeavors Provides Update on its Salon Roll-Up Plans
SALT LAKE CITY, UT -- (Marketwired) -- 01/09/17 -- Green Endeavors, Inc. (OTC PINK: GRNE), an owner and operator of premium hair salons under the Landis brand, is embarking on a roll-up strategy targeting high-end, multi-location salons with between two and 10 locations.
According to data from the 2 to 10 Project, regional, high-end chains with between two and 10 locations generate sales that are 12x the industry average. Many of these highly successful brands are owned by baby boomers nearing retirement that lack exit options.
Green Endeavors is addressing this unmet need through its roll-up strategy.
The Company is moving forward on its plans to acquire four salon chains over the next 18 months. The initial acquisition targets generate approximately $30 million in combined annual revenue, and the Company expects to grow this revenue to $38 million by 2020 with 50% improvement in EBITDA.
In addition to revenue metrics, Green Endeavors is focusing its acquisition targeting on non-franchise, regional market leaders with established brand recognition and opportunities for growth.
The initial two multi-location salon targets have been identified, and the Company expects to complete the acquisition of both in the first half of 2017.
Salons are a $60 billion industry in the US and $170 billion globally. This highly fragmented market, 95% of salons are single location, lacks a dominant consumer-facing operator and offers predictable, recession-proof business with lower risk-factors than many industries.
The industry provides synergistic service and retail revenue opportunities, and growth in recent years has outstripped the overall economy. In addition, the salon industry is immune to technological obsolescence and foreign competition.
"We are well-positioned in a $60 billion industry that has a significant unmet need, and the timing couldn't be better," stated Richard Surber, CEO of GRNE. "Our ideal acquisition targets are established brands owned by baby boomers nearing retirement. These owners lack effective exit strategies, and we are filling that void."
Surber continued, "We want to thank our shareholders for their support as we've worked to lay the foundation for significant growth. As we execute on these plans, we believe we will build lasting shareholder value improvement."
