Search
 

Regis Buys Sally for $2B-Plus

MINNEAPOLIS-Beauty product supplier Alberto-Culver Co. is selling its Sally Beauty retail chain for $2.6 billion to Regis Corp.

By Dana Dubriwny | Updated on January 10, 2006

MINNEAPOLIS-Beauty product supplier Alberto-Culver Co. has agreed to sell off its Sally Beauty retail chain for $2.6 billion to Regis Corp. The agreement will combine Sally Beauty Co.’s 2,419 Sally Beauty stores, 822 Beauty Systems Group outlets and 1,244-person direct sales force with Regis’ 10,952 beauty salons. Regis operates under the brand names Regis, Supercuts, Vidal Sassoon, SmartStyle and Trade Secret. The company also has 90 hair restoration centers and 35 beauty education schools.

Under the terms of the agreement, Alberto-Culver Co. shareholders, in addition to retaining their current Alberto-Culver shareholdings, will receive 0.6 shares of Regis Corp. in respect of each share of Alberto-Culver Company they own. At closing, Regis Corp. will have approximately 102 million diluted shares outstanding and Alberto-Culver shareholders will own approximately 54.5% of the shares in the combined company. Upon closing, Regis intends to raise its annual dividend 125 percent to 36 cents per share. As part of the transaction, Regis Corp. will also assume $400 million in debt.

Following completion of the merger, Howard B. Bernick, Alberto-Culver president and CEO, will join Regis’ board of directors as its non-executive chairman. Paul D. Finkelstein, chairman and chief executive officer of Regis, will continue in his position, and Gary Winterhalter will continue as president of Sally Beauty Co.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.