Regis Corporation announced that it is in the advanced stages of discussions to combine the majority of its continental European hair salon operations with the hair salon business operated in Europe by the Franck Provost Group.
The Franck Provost Group, led by its founder and chairman, Franck Provost, operates approximately 200 company-owned salons and 400 franchise locations, and has been operating salons in France and the European Continent since 1975.
If completed, Regis would own 30% of the combined business and the combination would create the largest hair salon company in Europe.
The combined business will have significant growth opportunities and will be managed by a proven local management team.
Regis would contribute its hair salon operations in France, Spain, Switzerland and several other European countries. Regis' salons in these countries primarily operate under the Jean Louis David and St. Algue brands. Regis' operations in the United Kingdom would not be part of the combination.
Completion of the transaction is subject to the negotiation and execution of definitive agreements, satisfactory completion of additional due diligence and obtaining applicable regulatory and other approvals.
The Company does not expect the proposed transaction to have a material impact on its fiscal 2008 operating results. If definitive agreements are executed, the Company plans to make an additional announcement concerning thistransaction at that time.
Regis Corporation
Regis to merge European opts with Franck Provost
