Creates Cost Synergies and Allows XpresSpa Leadership to Remain Focused on Growth Capelli to Sell XpresSpa Brand Travel and Spa Accessory Products through its Retail Distribution Network
NEW YORK, May 01, 2017 (GLOBE NEWSWIRE) -- XpresSpa, the industry-leading luxury airport spa company and a wholly owned subsidiary of FORM Holdings Corp. (Nasdaq: FH ), announced today an exclusive partnership with Capelli New York, global designers and manufactures of on-trend private label and branded products, to co-produce and sell XpresSpa’s line of branded travel and spa products and accessories which include neck pillows, blankets, massagers and masks, among others. XpresSpa elected to partner with Capelli New York to enhance its product offerings and distribution, while also lowering fixed operating costs that will effectively broaden overall gross margins.
“We are thrilled about our partnership with a leading company such as Capelli New York, who have more than 25 years of industry expertise in sourcing, manufacturing, product development and retail distribution. This collaboration is a natural evolution that will provide an opportunity for XpresSpa to grow its brand in and out of airport locations and reinforce our mandate to bring XpresSpa customers the best possible experience as well as travel and spa-related products throughout airports around the world,” said Ed Jankowski, Chief Executive Officer of XpresSpa.
Additionally, through this partnership, Capelli New York will develop an expanded collection of XpresSpa branded products to be sold through Capelli New York’s premium retail distribution network. Capelli has developed similar product line extensions for well-known brands such as Cover Girl, Badgley Mischka, HEAD, Sondra Roberts and US Army, among others.
“This collaboration with Capelli New York shows the power and brand recognition of the XpresSpa brand,” said Andrew Perlman, FORM Holding’s Chief Executive Officer. “We are impressed with the scale of Capelli New York’s operations and we are enthusiastic about the opportunity to broaden the reach of the XpresSpa brand beyond the airport.”
“Our long history in manufacturing has allowed us to build relationships with some of the most well-known brands in the world,” said Jack Cheika, Director of Business Development of Capelli New York. “XpresSpa is a premium brand and a leader in its industry, and we are excited to expand our network to include XpresSpa and become a long-term partner as XpresSpa continues its rapid growth.”
“As a frequent traveler and a customer of XpresSpa, I have long been familiar with XpresSpa and think very highly of it. Extending XpresSpa’s brand to consumers outside of the airport, leveraging our retail and merchandising capabilities, makes a tremendous amount of sense. We are looking forward to building upon XpresSpa’s success within the airport as we expand the brand to our network of retail outlets around the world,” said George Altirs, President of Capelli.
About XpresSpa
XpresSpa is the industry-leading luxury travel spa business, serving almost one million air travelers each year at its 22 airports in the United States, Amsterdam and Dubai. XpresSpa offers travelers premium spa services, including massages, reflexology, stress and tension release, manicures, pedicures, facials and waxing. Its Xpress nail, massage and hair blow-out services are designed specifically for the busy traveling customer, with treatments completed in 30 minutes or less. In stores and online, XpresSpa also offers exclusive luxury travel products and accessories, including travel pillows, blankets, massagers, and personal, hair, nail and bath and body products. XpresSpa has over 750 employees, including talented teams of professionally licensed massage therapists, cosmetologists and nail technicians who are committed to providing exceptional customer experiences. www.xpresspa.com
About Capelli New York
Capelli New York has been at the forefront of delivering superior products to their vast network of valued customers since 1990. Capelli designs, manufactures and markets on-trend private label and branded products sold globally at leading department stores, specialty stores and national chains. We operate with more than 3,000 employees across multiple continents including North America, Europe, and Asia, giving us a truly global presence and perspective. Because of our global presence, we are able to respond to the latest fashion trends quickly by leveraging our expertise in raw materials sourcing, innovative design, product development, and our owned manufacturing facilities. www.capellinewyork.com
About FORM Holdings Corp.
FORM Holdings Corp. (Nasdaq: FH ) is a publicly held diversified holding company that specializes in identifying, investing in and developing companies with superior growth potential. FORM's current holdings include XpresSpa, Group Mobile, FLI Charge, Infomedia and intellectual property assets. XpresSpa is the world's largest airport spa company with locations across 22 major airports. Group Mobile is a provider of rugged, mobile and field-use computing products, serving customers worldwide. FLI Charge designs, develops, licenses, manufactures and markets wireless conductive power and charging solutions. Infomedia is a leading provider of customer relationship management and monetization technologies to mobile carriers and device manufacturers. FORM Holdings' intellectual property division is engaged in the development and monetization of intellectual property. To learn more about FORM Holdings Corp. www.FormHoldings.com
Forward-Looking Statements
This press release includes forward-looking statements, which may be identified by words such as "believes," "expects," "anticipates," "estimates," "projects," "intends," "should," "seeks," "future," "continue," or the negative of such terms, or other comparable terminology. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from the forward-looking statements contained herein. Statements in this press release regarding the merger between FORM and XpresSpa; XpresSpa's projected revenue, the ability to raise capital to fund operations and business plan; the continued listing of FORM's securities on the Nasdaq Capital Market; market acceptance of FORM products; the collective ability to protect intellectual property rights; competition from other providers and products; FORM's management and board of directors after the merger; and any other statements about FORM's management team's future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including, but not limited to: FORM's inability to maintain the listing of its securities on the Nasdaq Capital Market; the potential lack of market acceptance of FORM's products; FORM's inability to monetize and recoup FORM's investment with respect to assets and other businesses that that were acquired or will be acquired in the future; general economic conditions and level of information technology and consumer electronics spending; unexpected trends in the mobile phone and telecom computing industries; the potential loss of one or more of FORM's significant Original Equipment Manufacturer ("OEM") suppliers, the potential lack of market acceptance of FORM's products; market acceptance, quality, pricing, availability and useful life of FORM's products and services, as well as the mix of FORM's products and services sold; potential competition from other providers and products; FORM's inability to license and monetize FORM's patents, including the outcome of litigation; FORM's inability to develop and introduce new products and/or develop new intellectual property; FORM's inability to protect FORM's intellectual property rights; new legislation, regulations or court rulings related to enforcing patents, that could harm FORM's business and operating results; FORM's inability to retain key members of its management team; and other risks and uncertainties and other factors discussed from time to time in our filings with the Securities and Exchange Commission ("SEC"), including FORM's Annual Report on Form 10-K for the year ended December 31, 2016 filed with the SEC on March 30, 2017. FORM expressly disclaims any obligation to publicly update any forward-looking statements contained herein, whether as a result of new information, future events or otherwise, except as required by law.
Contacts FORM Holdings Jeff Sonnek ICR 646-277-1263 Jeff.Sonnek@icrinc.com XPRESSPA Brad Zeifman SHADOW 212-972-0277 Brad@weareshadow.com
