Company News, Financial News

Clairol to Sally?

Speculation of P&G brand sales begins.

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By: TOM BRANNA

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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.

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