Skip to main content

Alberto-Culver to Sell Sally Beauty Unit to Regis for $2.6 Billion

NEW YORK — Alberto-Culver Co. said Tuesday that it signed a$2.6 billion agreement to spin-off the Sally Beauty Co. retail chain andmerge it with Regis Corp.

Sally Beauty, which generated revenuesof $2.25 billion and pre-tax operating...

NEW YORK — Alberto-Culver Co. said Tuesday that it signed a$2.6 billion agreement to spin-off the Sally Beauty Co. retail chain andmerge it with Regis Corp.

Sally Beauty, which generated revenuesof $2.25 billion and pre-tax operating earnings of $224 million inthe fiscal year ended Sept. 30, 2005, is the world’s number one marketerof professional beauty supplies. Regis is a global leader inbeauty salons, hair restoration centers and beauty education.

The combinedentity will include Sally Beauty’s 2,419 Sally Beauty stores, 822 BeautySystems Group outlets and 1,244-person direct sales force and Regis’10,952 beauty salons. The salons operate under brand names such asRegis, Supercuts, Vidal Sassoon, SmartStyle and Trade Secret. Inaddition, there are 90 hair restoration centers and 35 beauty educationschools.

The boards of Alberto-Culver and Regis have voted toapprove the transaction. The deal is still subject to both shareholderand regulatory approvals. It is expected to be completed inlate springor early summer.

You May Also Like

Alberto-Culver shareholders will retain theirshares and will receive 0.6 shares of Regis for each share ofAlberto-Culver. They will also get a special one-time cash dividend foreach share.

The deal will leave Alberto-Culver as a $1.4 billioncompany focused on branded consumer products such as AlbertoVO5, Nexxusand St. Ives.

For more, see tomorrow’s print edition of WWD.