Regis Selling Hair Club For $163.5 Million
MINNEAPOLIS (AP) — Hair salon operator Regis Corp. is selling hair replacement services provider Hair Club for Men and Women to Japan's Aderans Co. for $163.5 million in cash.
Aderans, based in Tokyo, offers hair replacement and restoration products and services. Its brands include Aderans for men, Fontaine for women, and Bosley, a provider of hair loss solutions and medical hair restoration.
"Acquiring Hair Club is an important step in our previously announced strategic shift away from focusing on business reorganization to emphasizing global revenue and profit expansion," Aderans founder and representative director Nobuo Nemoto said in a statement.
For Regis, the deal will help it concentrate on its core salon businesses which include Supercuts and MasterCuts.
"We believe the sale of Hair Club represents an opportunity to exit a non-core business on attractive terms while taking another significant step in refocusing operational resources on expanding sales, margins and profitability of salon operations," Regis Chairman Joel Conner said in a statement.
The company has shed some other non-core assets of late. In April Regis announced that it was selling its minority stake in Europe's biggest hair salon company, Provalliance, to members of the Provost family for 80 million euros ($105.3 million).
Provalliance SAS operates under the brands of Jean Louis David, Franck Provost and Saint Algue. The Paris-based company is a subsidiary of Provost Participations SAS and its president is Yvon Provost, according to CapitalIQ.
Regis said Monday that there are no financing conditions to close the buyout of Hair Club for Men and Women. It expects an $8 million to $12 million after-tax gain during the quarter that it completes the transaction.
The deal is expected to close in the third or fourth quarter.
Regis owned, franchised or held ownership interests in about 12,700 hair salons globally as of March 31.
Last week the company announced that Daniel Hanrahan, former president and CEO of Celebrity Cruises, will become its president and CEO effective Aug. 6.
Its shares finished at $17.42 last week. That is closer to the high end of their 52-week range of $12.46 to $18.91.
