General Atlantic Backs IVs, Cryotherapy With Restore Bet
(Bloomberg) -- General Atlantic is betting on Restore Hyper Wellness, a provider of services including intravenous drip therapy and cryotherapy.
The private equity firm made a $140 million investment in the Austin, Texas-based company, which raised about $100 million in the transaction that featured secondary sales. Restore is valued at more than $500 million, according to a person with knowledge of the matter.
Restore’s customers turn to IV drip therapy -- which infuses a liter of saline with vitamins, amino acids and minerals -- and other offerings like infrared sauna sessions either spontaneously, or regularly as part of managing chronic conditions, co-founder and Chief Executive Officer Jim Donnelly said in an interview.
Restore will spend its new funding on recruiting and expanding “as quickly as possible,” Donnelly said. The company, which operates via a franchise model, has 115 locations in 34 states and plans to add over 100 more to be in 46 states by the end of next year. “We want the best real estate in around the country, and to make experiences affordable and accessible to as many people as possible,” he added.
The investment marks General Atlantic’s first foray into the wellness sector, said Shaw Joseph, a managing director.
“More and more, consumers are focused on proactive and preventative health management,” Joseph said. “This is a long-term trend that we’ve seen further catalyzed by the pandemic, and Restore is helping to establish this new wellness market catering to diverse consumer needs.”
Restore’s customer base is diverse and it has had success beyond gateway cities like New York and Los Angeles in places such as Wichita, Kansas and Lancaster, Pennsylvania, co-founder Steve Welch said, disputing the notion that recipients of IV drips and other wellness treatments are for the wealthy or celebrities. (Fictional executive Mike ‘Wags’ Wagner received drip therapy after a night out in the Showtime television show “Billions.”)
Of Restore’s customers, 40% have household incomes below $100,000 and their occupations range from lawyers to construction workers. Just 10% of the company’s customers have household incomes over $250,000, he said.
Piper Sandler advised on the transaction.
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