Stellus Capital Management Facilitates Acquisition of Arthur Murray International Through Strategic Financing

Stellus Capital Management Supports Arthur Murray Acquisition

In a significant move within the financial services sector, Stellus Capital Management, LLC has recently announced that it provided unitranche financing as well as equity co-investment to support Clarion Capital Partners in their acquisition of Arthur Murray International, Inc., a prominent name in the dance studio franchise industry.

Founded in 1912, Arthur Murray has grown into a worldwide network of 300 dance studios spread across 24 countries. This expansion has fortified its position as a leader in dance education and franchise operations globally. In the wake of this acquisition, the company is set to usher in a new era of growth under the leadership of Gary Edwards, a distinguished dancer with over four decades of experience in the industry. Edwards takes on the role of CEO after serving as a long-time ambassador for the company. He succeeds Philip S. Masters, who has driven the company's growth in recent years.

Eric Kogan, a Partner at Clarion Capital, expressed enthusiasm about partnering with Gary Edwards, stating, "Clarion is honored to partner with Gary Edwards to continue the Arthur Murray legacy Phil Masters built." His comments highlight the continuity and the commitment to further developing the brand that has been a staple in the dance community for over a century.

Colin Baker, Managing Director at Stellus, echoed this sentiment, adding, "We are excited to partner with Clarion, Gary, and the rest of the Arthur Murray team. We look forward to supporting the next phase of growth under Clarion's ownership." This partnership aims to not only sustain but also enhance Arthur Murray's legacy in the dance education sector.

The acquisition signals a promising chapter for Arthur Murray as it prepares to leverage Clarion’s expertise in expanding its franchising capabilities and enhancing the educational offerings available at its studios. Given the rising popularity of dance and fitness activities, especially in a post-pandemic world, this acquisition comes at an opportune moment.

Stellus Capital Management has established itself as a crucial player in the investment community by supporting strategic acquisitions that aim for sustainable growth. Their decision to back Clarion in acquiring one of the most recognized names in the dance industry illustrates not just confidence in the franchise model but also in the future of dance as an engaging community activity.

As Clarion Capital partners with Stellus, there is a clear vision for the future—one that focuses on growth, sustainability, and the continued success of Arthur Murray International. The collaboration sets a precedent in the financial and franchise sectors, illuminating the intricate relationships that support successful brand transformations.

With a new CEO at the helm and the backing of trustworthy financial partners, Arthur Murray is poised for a revitalization, continuing its legacy of excellence in dance education while appealing to new generations of dance enthusiasts around the world.