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Regis Agrees to Sell Hair Club for $163.5 Million
The Regis Corporation said on Monday that it had agreed to sell its hair restoration division, Hair Club for Men and Women, to the Japanese wig maker Aderans for $163.5 million in cash.
Regis, whose franchises include Supercuts and Sassoon Salon, said the deal would help it shore up profit and focus on its main business at a time when customers have cut back on haircuts. The transaction is expected to close later this year.
We believe the sale of Hair Club represents an opportunity to exit a noncore business on attractive terms, Joel Conner, the chairman of Regis, said in a statement.
Regis, which bought Hair Club in 2004, expects to record an after-tax gain of $8 million to $12 million on the sale.
The Regis Corporation said on Monday that it had agreed to sell its hair restoration division, Hair Club for Men and Women, to the Japanese wig maker Aderans for $163.5 million in cash.
Regis, whose franchises include Supercuts and Sassoon Salon, said the deal would help it shore up profit and focus on its main business at a time when customers have cut back on haircuts. The transaction is expected to close later this year.
We believe the sale of Hair Club represents an opportunity to exit a noncore business on attractive terms, Joel Conner, the chairman of Regis, said in a statement.
Regis, which bought Hair Club in 2004, expects to record an after-tax gain of $8 million to $12 million on the sale.
