Does she or doesn't she? No, not dye her hair...what we mean is, will Sally Beauty Holdings purchase Wella Color Charm or Clairol Professional from Procter & Gamble? As Sterne Agee's Ike Boruchow noted, P&G is already the beauty product retailer's largest supplier. Two brands in particular could be tempting for Sally Beauty: hair color brands Wella Color Charm and Clairol Professional. Combined, they generate about $200 million in annual retail sales, with $150 million just through Sally Beauty, he points out.
Acquiring one or more P&G brands would be "highly accretive" to Sally Beauty's margins, as it could raise prices after it becomes the sole distributor of a particular product, say industry observers.