European Wax Center to go private in $330m General Atlantic deal
All-cash transaction at $5.80 per share represents 45% premium, delivering private equity partner full control of franchised waxing chain
European Wax Center has agreed to be taken private by General Atlantic in an all-cash transaction valued at approximately $330 million, delivering a substantial premium to investors who have seen the stock decline over the past year.
The Plano, Texas-based company, which operates as a franchised provider of waxing services across the United States, will receive $5.80 per share in cash—a 45% premium to its closing price on February 9 and a 51% premium to its 90-day volume-weighted average share price. The transaction, announced on February 10, is expected to close in mid-2026.
General Atlantic, the global growth equity firm that first invested in European Wax Center in 2018, already beneficially owns approximately 42% of the company's outstanding shares. The deal will give the private equity firm full control of the franchised beauty services provider, allowing it to pursue long-term operational strategies without the pressures of public market scrutiny.
The transaction received unanimous approval from a Special Committee of European Wax Center's Board of Directors, composed entirely of independent directors. The committee was advised by Moelis & Company as exclusive financial advisor, while Ropes & Gray LLP provided legal counsel. General Atlantic was advised by BofA Securities and Guggenheim Securities as financial advisors, with Paul, Weiss, Rifkind, Wharton & Garrison LLP serving as legal counsel.
The deal comes after a challenging period for European Wax Center's public market performance. The stock had declined 14% over the 120 days preceding the announcement, closing at $4.03 on February 9. Despite the recent weakness, analysts had maintained relatively positive price targets prior to the deal, with consensus estimates ranging from $4.92 to $6.88 per share.
European Wax Center's recent financial performance showed mixed results. The company reported third-quarter fiscal 2025 revenue of $54.2 million, surpassing analyst expectations of $52.75 million, despite a 2.2% year-over-year decline. GAAP earnings per share of $0.09 significantly exceeded analyst estimates of $0.04. However, the company has faced headwinds, including 20 net center closings in fiscal 2025.
The company's business model relies on franchising, with European Wax Center generating revenue primarily from royalties, wax sales, and service fees paid by franchisees. The chain is known for its proprietary Comfort Wax® and "Wax Pass" loyalty program, positioning itself in the competitive beauty and personal care market against traditional salons and emerging laser hair removal alternatives.
Private equity interest in beauty and wellness services has intensified as investors seek durable, cash-generative businesses with strong brand identities and recurring revenue models. The sector has proven resilient amid economic uncertainty, with consumers prioritizing personal care expenditures even during tighter budgetary conditions.
Following completion of the transaction, European Wax Center's class A common stock will no longer be listed on Nasdaq, and the company will become privately held. The deal remains subject to approval by a majority of votes cast by non-General Atlantic affiliated stockholders and satisfaction of customary regulatory approvals.
The go-private transaction represents a significant development for the beauty services franchisor, which has approximately 44 million shares outstanding. At the current market capitalization of approximately $224 million prior to the announcement, the transaction delivers substantial value to minority shareholders while allowing General Atlantic to consolidate its position in a company it has supported through its growth phase over the past eight years.