Empire Beauty Schools & Regis merger to create a new company
20 Apr '07
3 min read
“We are highly confident that Empire's management team will operate the beauty schools at the highest level. Regis will be able to add significant value to the venture with our strong education and marketing programs coupled with the ancillary benefits that the Vidal Sassoon Academies (which are not part of this transaction) and Horst Rechelbacher (the founder of Aveda and a beauty industry icon) will provide. In addition, we will have double the number of qualified graduates who will have placement opportunities at our Regis operated salons."
The Company will record an estimated $20 to $25 million pre-tax non-cash charge as a result of the transaction. "We expect the integration of the Regis schools into Empire Education Group to take several months and there will be significant integration costs, which will result in the transaction reducing earnings by approximately $0.05 per diluted share in fiscal year 2008," commented Mr. Finkelstein.
"Once the integration is complete, we will share in significant synergies and operating improvements. Long-term, this transaction should be very accretive and our expectations will be to add significantly more shareholder value than the impairment charge."
In conclusion, Mr. Finkelstein stated, "Turning over the management of the beauty school business to the industry's premier management team led by Frank Schoeneman is the optimal way to grow the segment and drive shareholder value and will allow Regis management to continue to focus on energizing our core salon business. We will provide further detail of this transaction on our third quarter earnings conference call scheduled for April 25, 2007 at 10:00 a.m. Central Time."
marketing@alchempro.com
