Regis Announces Sale of Hair Club for Men and Women for $163.5 Million
Regis Corporation (NYSE: RGS) today announced that it has entered into a definitive agreement with Aderans Co., Ltd. to sell Hair Club for Men and Women (Hair Club), its subsidiary offering proven hair loss products and services. Under the terms of the agreement, Regis will receive $163.5 million in cash. The transaction is expected to close in the third or fourth quarter of calendar 2012.
“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,” said Joel Conner, Chairman of the Board. “This agreement, which follows the previously announced agreement to sell Regis' stake in Provalliance, also represents the significant progress Regis has made in its evaluation of non-core assets. We look forward to continuing to implement our strategy of improving the customer experience in our salons and enhancing shareholder value.”
BofA Merrill Lynch is acting as exclusive financial advisor and O'Melveny & Myers LLP is acting as legal advisor to Regis in connection with the transaction. The transaction is subject to customary closing conditions. There are no financing conditions to closing the transaction. Additionally, in the period of closing the sale transaction, Regis expects to record a non-operational, after-tax gain of $8 million to $12 million.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.