Deal part of struggling salon operator to sell off "non-core assets."
Edina-based hair-care giant Regis Corp. has completed the sale of its ownership interest in Provalliance for 80 million Euros, or about $105.3 million, to the family of stylist Franck Provost, the company said Wednesday.
Regis announced the deal of the Paris-based chain of European hair salons in April as part of a broader effort to shed non-essential business units and focus on its beleaguered salon business in North America. In July, the company spun off Hair Club for Men and Women to Tokyo-based wig-maker Aderans Co. Ltd. for $163.5 million.
Regis Corp. CEO Dan Hanrahan, who took the helm on Aug. 6, said in a statement that the two sales "represent significant progress in the company's evaluation of non-core assets."
The strategy is part of New York hedge fund Starboard Value LP's efforts to revitalize Regis, which operates about 10,000 salons worldwide, including Supercuts, Sassoon Salon, MasterCuts and Cost Cutters.
The company struggled during the economic downturn as consumers cut back on hair cuts and other salon products and services. It also has faced stiff competition from rivals such as Great Clips, also based in Edina, as well as Fantastic Sam's and Sports Clips.
Jackie Crosby 612-673-7335