Regis Corporation announced on December 19, 2024, the acquisition of Alline Salon Group (ASG), its largest franchisee, in a transaction valued at $22 million of initial consideration. The deal includes the potential for an additional $3 million in earn-out payments over the next three years.
The acquisition of 314 salons is expected to add $83 million in revenue and $5.8 million in EBITDA to Regis's financial performance. The initial consideration was funded with $19 million in cash, sourced from a $15 million upsize of Regis's credit agreement and $4 million from available cash, along with $3 million in Regis common stock.
This strategic move provides Regis with a turnkey operating infrastructure and expands its company-owned salon portfolio, which will serve as a testing ground for brand and operational initiatives. The company stated that the transaction is accretive to Adjusted EBITDA and is expected to slightly decrease leverage, while maintaining an asset-light model with approximately 93% of salons remaining franchisee-owned.
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