Tucker’s Farm Group, the Bermudian-based investment holding vehicle, has sold its minority stake in VIO Med Spa, the leading medical spa franchiser in the United States.

In July 2022, Tucker’s Farm and its affiliates made a structured minority investment in VIO to help fund its nationwide expansion, bolster the company’s talent pool, expand training and education, and develop additional corporate-owned locations.

A Tucker’s Farm representative was not able to disclose size or terms. However, the buyer Freeman Spogli specialises in $100-750 million deals according to its website.

The spokeswoman for Tucker’s Farm said: “I can share that the exit represents a successful transaction for Tucker's Farm.”

She said that VIO has enjoyed significant growth since the Tucker’s Farm investment in 2022 including: a 241 per cent growth rate of its locations between 2022-24 (12 to 46 locations, with 30-plus more locations planned to open by the end of this year); expanding operations from seven to 15 states; and VIO Med Spa ranked number one in the med spa category in Entrepreneur's Franchise 500 in 2024.

This growth has been supported by the overall growth of the med spa industry with research from Precedence Research published earlier this year saying the US medical spa market is expected to grow from $5.6 billion in 2023 to $23.06 billion by 2033, the spokeswoman said.

Regarding the partnership, Nick Stanoszek, VIO’s cofounder, referenced Kyle Tucker, the head of capital allocation at Tucker’s Farm.

“We liked Kyle’s strong background in franchising, his investing experience at Apollo and Viking, and his creativity in providing a flexible capital solution that got the company growth investment it needed while minimising dilution for the founding shareholder group.”

Adam Lewin, partner at Tucker’s Farm and chief executive of Tucker’s Farm subsidiary Wonder Franchises, said: “It has been a pleasure to work with [VIO co-founders] Joe [Stanoszek], Nick, [chief executive] Ryan Rose and [chief development officer] Ryan Rao.

“We believed in the team’s passion and vision for the company, and we’ve been impressed with the tremendous growth the VIO team has achieved since our investment. We are excited to see where VIO goes in its next chapter.”

Yesterday, VIO announced that it has partnered with Freeman Spogli, a strategic growth investor in the consumer services and franchising industries.

VIO founders, Joe and Nick Stanoszek, and cofounder Harish Kakarala will remain significant minority investors alongside Freeman Spogli and senior management. Specific terms of the transaction were not disclosed.

Houlihan Lokey served as financial adviser and Lathrop GPM acted as legal counsel to Tucker’s Farm.

Tucker’s Farm Group is a value-oriented holding vehicle based on the island. Founded in 1994 as a small goat dairy, it has grown into a family of companies across industries and geographies. Capitalised with a long-term equity base, the Farm seeks to find and compound cash flows through highly active M&A strategies.

Wonder Franchises is a holding company subsidiary of Tucker’s Farm led by Mr Lewin. Founded in 2023 with committed capital from Tucker’s Farm and select institutional partners, Wonder Franchises is dedicated to aggregating emerging franchisers, franchisees and select multi-site retail assets. Wonder Franchises seeks to be a long-term home for a world-class portfolio of brands and related assets.