Alberto-Culver Company has made a $2.6 billion agreement to spin-off Sally Beauty Company, the world’s number-one marketer of professional beauty supplies, and merge it with Regis Corporation, a global leader in beauty salons, hair restoration centers, and beauty education. The agreement will combine Sally Beauty Company’s 2,419 Sally Beauty stores, 822 Beauty Systems Group outlets, and 1,244-person direct sales force with Regis’ 10,952 beauty salons, operated under brand names such as Regis and Supercuts, 90 hair restoration centers, and 35 beauty education schools.
Alberto-Culver manufactures, distributes, and markets leading personal care products, including Alberto VO5, St. Ives, and Nexxus in the United States and internationally.
The transaction is expected to be completed in late spring or early summer of 2006.
Following completion of the transaction, Howard B. Bernick, Alberto-Culver president and CEO, will join Regis’ board of directors as its non-executive chairman. Paul D. Finkelstein, chairman and CEO of Regis, will continue to serve as Regis’ CEO, and Gary Winterhalter will continue as president of Sally Beauty Company. Sally Beauty chairman Michael H. Renzulli will enter a three-year consulting agreement with Regis.
“I am delighted that we have reached this agreement to merge Sally/BSG with Regis,” said Bernick. “Regis Corporation will have a powerful global professional beauty products sales and distribution business that complements its salon services operations, with significantly greater cash flow to use in building its businesses and long-term shareholder value. The spin/merge will also eliminate current customer and vendor conflicts between our consumer products and our distribution businesses at Alberto-Culver, allowing both businesses to compete more effectively.”
