Praesidian Capital Finances Recapitalization of Nation’s Leading Mall-Based Massage Chair Operator

Leading Middle Market Mezzanine Firm Invests in Sit Back & Relax, LLC

Praesidian Capital, a leading provider of mezzanine debt to middle market companies, has provided subordinated debt financing in the amount of $6,500,000 for the recapitalization of Sit Back & Relax, LLC (“SBR”), the leading owner and operator of premium coin-operated massage chairs in the United States. Since being acquired in November 2004, SBR has grown from 700 chairs in approximately 100 malls to over 2,400 chairs in over 350 malls. In a highly fragmented industry, SBR’s nationwide presence, strong customer relationships and reputation for high quality provide a competitive advantage in the marketplace.

“This is a vibrant business with superior prospects for growth,” said Ted Koch, Managing Partner at Praesidian. “SBR’s management team led by Kyle Nagel continues to demonstrate its ability to build significant value by executing a growth strategy in an attractive and highly fragmented market. As demonstrated by their past business successes, Mr. Nagel and his team know how to operate and grow mall-based vending enterprises.”

“The company is favorably positioned to expand into airports, amusement parks, zoos, and other public venues,” said Kyle Nagel, CEO of SBR. “Praesidian is providing strategic and financial support that enhances our future growth prospects, and we believe its commitment to work collaboratively with our team will result in a profitable and rewarding relationship for all parties.”

Since the close of its debut fund in February of 2005 on $157 million, Praesidian has established a strategy of providing mezzanine capital to historically profitable middle market companies with talented management teams throughout the United States. The firm has invested in twelve separate companies and has completed five add-on investments in existing portfolio companies. In July, Praesidian helped to finance the recapitalization of CODi, Inc., a leading provider of notebook computer carrying cases to Fortune 500 companies, and the recapitalization of Davis Inotek Instruments, a world leader in distribution and calibration of test, measurement and control instrumentation, which supported the company’s acquisition of General Electric’s calibration and repair business. In August, Praesidian completed its fourth investment in Club Ventures Investments LLC, owner of David Barton Gym, a business Praesidian has helped to transform from a single New York location into a multi-city network of high-end fitness clubs.

About Praesidian Capital
Praesidian provides mezzanine debt to middle market companies. The firm provides capital for established, historically profitable companies, as well as for management/leveraged buyouts, recapitalizations and refinancings. Investments are focused on successful businesses in the manufacturing, distribution and service sectors, although the firm’s approach is not driven by an industry focus. For more information, visit

About Sit Back & Relax, LLC
SBR, headquartered in Bedford, NH, is the leading owner and operator of premium coin-operated massage chairs in the United States. The Company’s 2,400 installed massage chairs are located in over 350 retail malls across the country. SBR installs custom designed massage chairs that are designed for a premium look and feel with the durability for extended use in public venues. SBR can arrange the chairs in a variety of configurations consisting of two to eight chairs. Given this flexibility, the Company can often position its chairs in otherwise un-rentable space within the mall.

Media Contact: Dan Jacobs
Broadgate Consultants, LLC
Phone: 212 232 2227