PARIS — Regis Corp. plans to sell a majority stake in its franchise salon operations in Continental Europe to Franck Provost Salon Group, the companies announced Tuesday. Once the deal is inked, which is expected to happen in January, it will create the largest hair salon company in Europe, called Provalliance.
Financial terms of the agreement, which doesn't include Regis' operations in the U.K., were not disclosed.
"It is very good for our development," said Franck Provost, founder and chairman of Paris-based Franck Provost, of the deal. "We will become number one in Europe and number two in the world.
On a global basis, Franck Provost is second to Regis, based in Minneapolis, whose Jean Louis David, Saint Algue, Coiff & Co., City Looks and Intermede salon businesses on the Continent will become part of Provalliance.
The new entity is also to comprise Franck Provost's activities, such as Franck Provost, Fabio Salsa and Niwel salons, plus licenses. These include one with LVMH Moët Hennessy Louis Vuitton for Jean Louis David accessories, another with L'Oréal for Jean Louis David hair products and a third with Henkel for Saint Algue hair products.
"We will conserve the identity of all of our brands," continued Provost, who isn't ruling out other acquisitions.
Regis is to retain a 30 percent stake in Provalliance, while the remaining share is to be owned by Franck Provost Salon Group. That company, in turn, is 70 percent held by the Provost family and 30 percent owned by Invus.
Provalliance's operations will include eight brands and more than 2,200 company-owned and franchised salons boasting some 25 million clients. It is expected to generate more than $200 million in revenues and $900 million-plus in system-wide sales.
The Franck Provost Salon Group, founded in 1975, runs approximately 200 wholly owned salons and 400 franchised locations. It is the salon leader in Italy and has a strong presence in Spain and Poland, according to the firm, whose annual sales are $140 million and system-wide revenues top $300 million.
Regis is the worldwide leader in beauty salons and hair-restoration centers. It operates more than 12 holdings, including Supercuts, Vidal Sassoon and Regis Salons. It has 12,000 wholly owned, coowned and franchised salons, principally in the U.S.
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