The transaction is expected to be complete in December. Alberto-Culver shareholders will continue to own 100% of the Alberto-Culver business, and 52.5% of Sally Beauty Supply. A fund managed by Clayton, Dubilier & Rice (CD&R) will invest at least $575 million to acquire the remaining 47.5% of Sally. When the spin-off is complete in December, the independent Sally Beauty Supply will be a $2.3-billion business with 2,465 Sally Beauty stores and 825 Beauty Systems Group (BSG) outlets.
"CD&R sees opportunities at accelerating the Sally growth rate, not only in the US, but internationally," said Gary Winterhalter, president of Sally Beauty Co., during a conference call Monday. "They also see opportunities on the Beauty Systems Group side of the business." The deal also can expand Sally's retail product lines.
"Conflicts have developed over the last few years between Sally and BSG's many vendors being Alberto Culver rivals," said Howard B. Bernick, who will retire as Alberto-Culver's president and CEO when the spin-off is complete.
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