Therme Group Forms Pivotal Joint Venture with CVC Capital Partners to Drive Global Expansion of Wellness Facilities
In a move that signifies a significant escalation in the wellness and leisure sector, Therme Group has formed a strategic joint venture with the renowned private equity firm CVC Capital Partners (CVC), estimated to be valued at over €1 billion (approximately US.1 billion, £855 million). This association is set to establish a new holding company named Therme Horizon, which aims to facilitate the expansive growth of the Therme concept, renowned for its immersive water-based wellness experiences.
The collaboration, which is anticipated to finalize later this year, is currently pending regional regulatory approvals. In this joint venture, Therme Group and CVC will act as equal partners, marking a notable milestone in the trajectory of Therme Group’s ambitious plans for international expansion.
Therme Horizon is positioned to take ownership of prominent existing facilities, including Therme Erding in Germany, which was acquired earlier this year, and Therme Bucharest in Romania. Collectively, these sites attract approximately 3.5 million guests annually, a testament to their popularity and the vibrant wellness culture embedded within the Therme brand.
Moreover, CVC is set to co-invest in the ambitious development of Therme Manchester in the United Kingdom, which is projected to be the largest water-based wellness destination in Europe, covering an expansive 28 acres. While the initial opening was anticipated for 2023, the project is now scheduled to commence in late 2028, further emphasizing the transformative vision behind the venture.
“CVC’s substantial investment through CVC Capital Partners IX, a €26 billion (US.9 billion, £22 billion) fund raised in 2023, underscores our commitment to backing market-leading businesses across Europe and the Americas. Our collaboration with Therme Group is not merely a financial investment but a partnership aimed at enhancing the societal and communal impact of our ventures,” stated a representative from CVC.
Robert Hanea, Chair and CEO of Therme Group, expressed optimism about the partnership, noting, “Our collaboration with CVC marks a major milestone in Therme Group’s global expansion narrative. With CVC by our side, we are dedicated to scaling our distinct wellbeing infrastructure that fosters lasting value for the communities we engage with. This partnership empowers us to amplify our existing operations in Europe and fast-track our global developmental initiatives.”
The strategic vision of Therme Horizon extends beyond mere expansion; it aims to leverage existing assets while pursuing new projects and acquisitions throughout Europe. The intent is not only to enhance their facilities but to also integrate innovative wellness practices into diverse environments, thereby enriching the overall guest experience.
The wellness tourism market, particularly within the realms of thermal baths and wellbeing retreats, has experienced a tidal wave of interest worldwide. That trend is echoed in Therme Group’s expansion initiatives, which currently encompass active projects in Germany, the United States, Canada, Scotland, and even South Korea. Earlier in the year, the Group unveiled plans for a unique 100-meter-high ‘oasis in the sky’ in Dubai, further exemplifying their commitment to pioneering luxurious wellbeing experiences.
Such developments signal a paradigm shift in how wellness is perceived and delivered across cultures and regions. As consumers increasingly prioritize mental and physical health in their choices, the demand for innovative wellness solutions will likely continue to soar. Therme Group’s concerted efforts to align with CVC’s investment capabilities can be understood as a strategic response to this growing market demand.
In conclusion, the Therme Group and CVC partnership, encapsulated in the establishment of Therme Horizon, symbolizes not just a significant financial investment but a larger commitment to enriching communities through innovative wellness and leisure facilities. As the landscape of wellness evolves, stakeholders in this space will be keenly observing the outcomes of this alliance, which stands to redefine the future of well-being in urban environments across Europe and beyond.
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