04.13.12
Regis Corporation has entered into an agreement with members of the Provost family to sell its minority ownership interest in Provalliance, the largest hair salon company in Europe.
Under the terms of the agreement, Regis will receive 80 million euros in cash. The transaction is expected to close prior to Sept. 30, 2012 and is subject to the Provost family securing financing for the purchase price, the salon chain operator said today.
“As part of our ongoing evaluation of non-core assets, we are pleased to have reached this agreement to divest our minority ownership interest in Provalliance. We remain focused on enhancing shareholder value through improving the customer experience in our core North American salon operations through simplifying our operating model and supporting our distinct consumer segments with differentiated marketing strategies and product offerings. We wish the management team and the Provost family the best as they embark on a new chapter in their company’s history,” said Eric Bakken, EVP, interim corporate COO.
In connection with the agreement, Regis concluded that an after-tax, non-cash net impairment charge, ranging between $15 million and $18 million, related to its investment in Provalliance will be recorded in the company’s third fiscal quarter of 2012. Prior to the impairment charge, the company’s net investment in Provalliance was approximately 92 million euros.
Under the terms of the agreement, Regis will receive 80 million euros in cash. The transaction is expected to close prior to Sept. 30, 2012 and is subject to the Provost family securing financing for the purchase price, the salon chain operator said today.
“As part of our ongoing evaluation of non-core assets, we are pleased to have reached this agreement to divest our minority ownership interest in Provalliance. We remain focused on enhancing shareholder value through improving the customer experience in our core North American salon operations through simplifying our operating model and supporting our distinct consumer segments with differentiated marketing strategies and product offerings. We wish the management team and the Provost family the best as they embark on a new chapter in their company’s history,” said Eric Bakken, EVP, interim corporate COO.
In connection with the agreement, Regis concluded that an after-tax, non-cash net impairment charge, ranging between $15 million and $18 million, related to its investment in Provalliance will be recorded in the company’s third fiscal quarter of 2012. Prior to the impairment charge, the company’s net investment in Provalliance was approximately 92 million euros.