Latest Hair Loss News

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.