Regis sells hair loss chain for $163.5 million
(Reuters) - Regis Corp (RGS.N) said it will sell Hair Club for Men and Women, its hair loss products unit, to Japan's Aderans Co Ltd (8170.T) for $163.5 million in cash, as it focuses on its salon operations.
The hair-salon operator, known for its Vidal Sassoon and Supercuts chains, is battling rising costs and slowing demand as frugal consumers take more time between haircuts.
The company has been exploring options for its non-core assets to cut costs and shore up its domestic business.
The company sold its stake in European peer Provalliance to the Provost family for 80 million euros ($105.40 million) in April.
Regis expects to book an after-tax gain of between $8 million and $12 million on the sale of Hair Club, which it had acquired in December 2004.
The sale, expected to close in the third or fourth quarter of 2012, comes days after former Royal Caribbean Cruises Ltd (RCL.N) executive Daniel Hanrahan took the helm at the hair-salon operator.
BofA Merrill Lynch advised Regis on the deal.
Shares of Minneapolis-based Regis closed at $17.42 on Friday on the New York Stock Exchange.
(Reporting by Arpita Mukherjee in Bangalore; Editing by Saumyadeb Chakrabarty)
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