11.10.10
Regis is ready to cut out of the hair salon business.The company, which owns or has an interest in more than 12,700 salons worldwide, is being auctioned off by investment bank Peter J. Solomon Co. Second-round bids are due today, according to a financial source. Earlier this year, Regis announced it was exploring a possible sale.
Clayton, Dubilier & Rice — a private equity firm that counts former Procter & Gamble Co. chairman, president and chief executive officer A.G. Lafley as a special partner — is expected to submit a bid, the source said.
Colin Hession, managing director of Colin Hession Consulting and a Happi columnist, noted that Regis is more than 10 times the size of its nearest competitor.
"Regis is a potential money making machine—when recession eases—with singularly little competition anywhere near its size, vacuuming up umpteen independent salons every year. What price a trade buyer? Chain retailer? Major supplier? No, probably unlikely, but it would certainly be a game changer."
A spokeswoman for Peter J. Solomon and a spokesman for Clayton, Dubilier both declined comment Tuesday.
Regis does business under trade names including Regis Salons, MasterCuts, SmartStyle, Supercuts and Cost Cutters and, in the hair restoration field, operates Hair Club for Men and Women.
Clayton, Dubilier & Rice — a private equity firm that counts former Procter & Gamble Co. chairman, president and chief executive officer A.G. Lafley as a special partner — is expected to submit a bid, the source said.
Colin Hession, managing director of Colin Hession Consulting and a Happi columnist, noted that Regis is more than 10 times the size of its nearest competitor.
"Regis is a potential money making machine—when recession eases—with singularly little competition anywhere near its size, vacuuming up umpteen independent salons every year. What price a trade buyer? Chain retailer? Major supplier? No, probably unlikely, but it would certainly be a game changer."
A spokeswoman for Peter J. Solomon and a spokesman for Clayton, Dubilier both declined comment Tuesday.
Regis does business under trade names including Regis Salons, MasterCuts, SmartStyle, Supercuts and Cost Cutters and, in the hair restoration field, operates Hair Club for Men and Women.