Steiner Leisure to buy stake in Mandara Spa

NEW YORK -- Steiner Leisure, the largest cruise spa provider, reached an agreement to purchase a 60% interest in Mandara Spa, whose companies operate spas in 50 locations as well as ship spas for Norwegian Cruise Line, Orient Lines and Silversea Cruises.

Under the agreement, Steiner will pay $29.4 million, $7 million in subordinated debt and $8 million in Steiner stock for the interest in Mandara, said Leonard Fluxman, Steiner president and chief executive officer.

The deal is expected to close early this month.

Steiner is acquiring its interest in Mandara's U.S. operations from entities controlled by the Pritzker family and Tomas Gottlieb, Mandara's senior executive, according to a statement.

As part of the transaction, Gottlieb and Mark Edelson, Mandara's other senior executive, agreed to remain with Steiner in their current roles.

Shiseido Co., a manufacturer of cosmetic and personal care products, will remain a 40% shareholder in Mandara.

"The Mandara transaction will expand Steiner's presence in the resort spa market significantly," said Fluxman. "This will make us a leading player in the worldwide spa market."

The pact, Fluxman added, also is "consistent with our intention of building a portfolio of brands to offer to our maritime and land-based clients."

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