Hair empire keeps growing
Regis Corp., the dominant player in hair salons in the US and Europe with over 11,000 locations (with such brands as Supercuts, Vidal Sassoon, Jean Louis David, and Regis), has struck again. It bought the retail beauty-supplies shops of Alberto-Culver in a $2.6 billion deal. These shops (in North America and Europe) are comprised of over 2,000 Sally Beauty Stores and over 800 Beauty Systems Group stores (for professionals). They make up the #1 beauty-care products retail chain.
The actual details of deal are complex thanks to tax shielding provisions, with Alberto-Culver becoming a major stockholder in Regis.
Alberto-Culver will continue to own its consumer beauty products, which include such brands as hair products (Alberto VO5, Nexxus, and TRESemmé); skin care products ( St. Ives); deodorant (FDS). The company also sells retail flavorings and additives (Sugar Twin, Molly McButter, Mrs. Dash, Baker's Joy) and household products (Static Guard). The company acquired the Nexxus hair-care brand in 2005.
One motivator for the sale was that Alberto-Culver had the problem of trying to push its own products while managing retail outlets that had to carry other brands to satisfy customer needs.
Already rumors are rife that the remainder of Alberto-Culver will now be all the easier to sell off to a consumer products company in the hair care business like L'Oréal, Unilever, or Procter & Gamble, companies which would not be interested in managing retail. As a smaller player, Alberto has a hard time fighting for shelf space for its personal care products. In this case, one deal may just be the prologue to another.
8:21:12 PM 
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