Therme Group Partners with CVC Capital Partners in a Groundbreaking €1 Billion Joint Venture
In a significant development within the leisure and wellness sector, Therme Group, a leading operator of wellness resorts, has entered a strategic joint venture with the private equity giant CVC Capital Partners. This partnership, valued at over €1 billion (approximately US.1 billion or £855 million), will culminate in the establishment of a new holding company, Therme Horizon. The joint venture aims to leverage the strengths of both organizations to enhance the existing wellness offerings and expand operations across Europe and beyond.
Upon completion of this agreement, which is anticipated later this year, pending regional regulatory approvals, Therme Group and CVC Capital Partners will become equal partners in Therme Horizon. This collaboration will consolidate their investments and facilitate further development in the growing wellness tourism market, which has increasingly become a focal point for both investors and travelers seeking holistic and restorative experiences.
Currently, Therme Horizon will oversee the management of two prominent wellness destinations: Therme Erding in Germany and Therme Bucharest in Romania. Together, these facilities welcome approximately 3.5 million visitors annually, providing a diverse array of health and relaxation services that cater to the demands of modern wellness seekers. The strategic ownership of these sites places Therme Horizon in a strong position to not only maintain but also enhance the customer experience in existing facilities.
In addition to managing these well-established sites, CVC Capital Partners will actively co-invest in the development of the highly anticipated Therme Manchester in the United Kingdom. Initially slated for a 2023 opening, this monumental project is now projected to debut in late 2028, confirming its status as the largest water-based wellness destination in Europe, spanning an impressive 28 acres. This endeavor underscores the ambitious plans that Therme Group harbors to reshape the landscape of wellness tourism in the region, as it aims to promote an integrated approach to health and relaxation.
With Therme Horizon as a foundation, the partnership seeks to act as a platform for strategic growth, envisaging the expansion of the Therme concept through new developments, acquisitions across Europe, and the enhancement of existing facilities. Therme Group’s intention to grow its footprint aligns with broader trends of consumers increasingly prioritizing wellness and self-care in their lifestyles.
CVC’s investment is facilitated through its latest fund, CVC Capital Partners IX, which boasts a substantial capital pool of €26 billion (around US.9 billion or £22 billion). The fund has been established with the objective of investing in market-leading enterprises within Europe and the Americas, marking a robust commitment to sectors that exhibit sustainable growth potential.
Speaking about the partnership, Robert Hanea, Chairman and CEO of Therme Group, articulated the strategic significance of this collaboration: “Our partnership with CVC marks a major milestone in the trajectory of Therme Group’s global expansion. With CVC as our partner, we’re committed to scaling our unique wellbeing infrastructure that delivers lasting value to the communities we serve. CVC’s significant investment enables us to grow our existing presence in Europe and accelerate our global development.”
The trajectory of Therme Group’s global ambitions does not end here. The company has outlined aggressive plans for expansion across various territories, including ongoing projects in Germany, the United States, Canada, Scotland, and South Korea. Additionally, Therme Group has recently unveiled exciting plans for a spectacular ‘oasis in the sky’ in Dubai, standing at a towering height of 100 meters, further demonstrating its commitment to progressive wellness environments that blend nature and modern design.
In summary, the joint venture between Therme Group and CVC Capital Partners signifies a pivotal moment in the evolution of wellness tourism. As public consciousness continues to shift toward holistic health and wellness, investments of this nature are poised to not only reshape the leisure landscape but also reinforce the notion of wellness as a fundamental component of contemporary living. This partnership not only heralds opportunities for economic growth but also enhances communities’ access to vital wellbeing resources across Europe and beyond.
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