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Hair Loss News Archives
November 2004
Regis to Buy Hair Club for Men and Women
November 2004
Hair Salon Operator Regis to Buy Hair Club for Men and Women
for $210 Million
MINNEAPOLIS (AP) --
Regis Corp., the world's largest operator of hair
salons, said Monday that it agreed to purchase Hair Club for Men and Women,
a hair loss services company, for $210 million.
The company said the transaction is scheduled to close in December and
will be financed with debt. Hair Club for Men and Women will operate as a
unit of Regis, and will retain its existing management team.
Regis chairman and chief executive Paul D. Finkelstein said, "Similar to our
salon operations, this business model generates strong, predictable cash
flow. We anticipate Hair Club will create significant shareholder value by
continuing to deliver double-digit revenue and earnings growth for many
years to come."
Regis said it expects the acquisition to contribute about $50 million in revenue and to modestly add to earnings during the second half of the current fiscal year. In fiscal year 2006, Hair Club is projected to add $115 million in revenue and $2.8 million in net income, or 6 cents per share.
Regis, the operator of Vidal Sassoon, Supercuts and Jean Louis David salons, said the deal won't impact growth expectations of the company's salon and beauty school businesses. Banc of America Securities is acting as exclusive financial adviser to Regis in connection with this transaction.