Empire Beauty Schools & Regis merger to create a new company
20 Apr '07
3 min read
Regis Corporation announced that it has entered into an agreement to merge its 51 accredited cosmetology schools into Empire Education Group, creating the largest beauty school operator in North America. This transaction leverages Empire Education Group's management expertise, while enabling Regis Corporation to maintain a vested interest in the beauty school industry. The transaction is expected to close on July 1, 2007 and is subject to various regulatory and accreditation approvals.
Upon completion of the transaction, Regis Corporation will own a 49 percent minority interest in Empire Education Group. The consolidated new Empire Education Group will own 88 accredited cosmetology schools with revenues of approximately $130 million annually and will be overseen by the current Empire management team.
The Empire Education Group currently operates 37 cosmetology schools with annual revenues of $63 million. Empire Beauty Schools, led by Franklin K. Schoeneman, chairman and CEO, and Mike Bouman, president and chief operating officer, has provided education to students seeking careers in cosmetology for more than 70 years. Empire has developed operating and administrative systems and a technology platform, which allows it to manage their 37 schools centrally through its Pottsville, Pa headquarters.
"We entered the beauty school business almost three years ago with the belief that it would be highly profitable and we still believe that," commented PaulD. Finkelstein, chairman and chief executive officer of Regis Corporation. "In order to maximize the enormous potential of the beauty school division, it would be necessary for Regis to invest heavily in information technology platforms and management. Merging with Empire is by far the best and fastest way for us to achieve our goals.”
marketing@alchempro.com
