“Our Consumer Products group and Sally Beauty Company have both matured into strong, independent businesses, each generating handsome revenue, earnings and cash flow and having strong growth potential,” said Carol L. Bernick, chairman of the board, Alberto-Culver Company. “By separating the companies, we have better positioned them to execute their business strategies and compete more effectively. We believe this transaction will provide strong benefits for the shareholders of both Alberto-Culver and Regis Corporation.”
Prior to completion of the merger, Sally will borrow $400 million, which it will distribute to Alberto-Culver Company. Alberto-Culver Company will use approximately $280 million of the proceeds after the closing of the merger to pay a $3 per share special one-time cash dividend to Alberto-Culver Company shareholders. In addition, Alberto-Culver’s annual cash dividend is expected to be 16 cents per share in conjunction with the Alberto-Culver share price adjustment. Regis’ annual cash dividend is expected to be increased 125% to 36 cents per share from its current annual payout of 16 cents per share.