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Regis to dispose of Provalliance stake for EUR80m
Friday 13 April 2012

13 April 2012 – US hair salon operator Regis Corporation (NYSE:RGS) said on Friday it had struck a deal to divest its minority stake in French peer Provalliance SAS to members of the Provost family for EUR80m (USD105.3m) in cash.

In order to successfully complete the transaction, which is seen to happen before 30 September 2012, the Provost family has to obtain funding to provide the agreed consideration.

Regis' executive vice president and interim corporate chief operating officer, Eric Bakken, said that the stake sale is part of the company's ongoing evaluation of its non-core assets. He also added that Regis will seek to simplify the operating model of its core North American salon activities and to support its consumer segments with various marketing strategies and product offerings.

The vendor expects to incur an after-tax, non-cash net impairment charge of between USD15m (EUR11.4m) and USD18m in its third fiscal quarter. Regis' net investment in the French business reached EUR92m before the specific charge, it said.
Date Published: 13/04/2012
Target: Provalliance SAS
Country: France
Deal Size: 105.3m (USD)
Sector: Business and Consumer Services
Type: Divestment
Financing: Debt
Status: Agreed
Vendor: Regis Corporation
Buyer: Provost family