Ride the Wellness Wave at Sea with Shares of this Unique Spa Operator

One Spa World to Go Public through Merger with Haymaker Acquisition Corp

By John Jannarone

The cruise industry is sometimes fraught with dangerous waters. But now, investors have a better way to navigate them.

Meet One Spa World (OSW), the dominant health and wellness company that operates spas aboard major cruise lines such as Carnival and Royal Caribbean. The company, which formerly traded as a listed stock called Steiner Leisure will soon re-list after it is acquired by Haymaker Acquisition Corp (ticker: HYAC), a blank-check company or SPAC that raised money to find a target.

OSW is truly unique because it commands a captive audience aboard cruise ships without the risk and expense of owning and operating the vessels. Indeed, cruise lines generally price their tickets to ensure ships are completely full, both in good times and in bad. That can lead to a rough ride for cruise-company investors as customer demand ebbs and flows.

But for OSW, the upshot is a highly-predictable revenue stream. Once onboard, passengers who are confined to a ship for days with limited entertainment options can purchase a range of services from massages to Botox injections to dermal fillers.

As a result, investors should think of OSW as more of a lifestyle and leisure brand like Lululemon than a cruise company. Similar to Lululemon, OSW benefits from a sweeping generational change as millennials make fitness and wellness a bigger priority than their older peers. But unlike Lululemon, OSW faces almost....

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