MERGERS AND ACQUISITIONS
Regis Corp., Edina, announced the completion of the sale of its ownership interest in Hair Club for Men and Women for $163.5 million. The pro forma effect of the sale on the Dec. 31, 2012, balance sheet would be to increase cash for $163.5 million, excluding closing adjustments and transaction fees, remove current and long-term assets held for sale of $16.8 million and $180 million, respectively, and current and long-term liabilities held for sale of $16.5 million and $28.8 million, respectively, resulting in an after-tax gain of $12 million. The actual after-tax gain to be recognized by the company during the three months ended June 30, 2013, will be adjusted by the closing adjustments and transaction fees.
NEW BUSINESS
Comtrol Corp., a Minneapolis manufacturer of industrial device communication products, has formed a partnership with Axis Communications, a provider of network video products for retail, transportation, critical infrastructure, perimeter security and public surveillance applications. Comtrol will participate in any joint marketing activities, education, and development opportunities to further both companies' success within the security market.
Lakes Entertainment Inc., Minnetonka, has modified its arrangement with the Jamul Indian Village relating to money it advanced to Jamul for a potential casino development on Jamul's trust land in San Diego County, Calif. Recently, Penn National Gaming Inc.'s subsidiary of Penn agreed with Jamul to jointly develop a Hollywood-branded casino and resort on Jamul's trust land. Lakes previously had agreements with the tribe to develop a casino on the same trust land, but terminated the agreement in March 2012. Lakes had lent Jamul about $57.5 million under the agreement. Lakes agreed to modify the terms of its outstanding debt with Jamul to reflect that the total debt outstanding is currently $60 million, and that interest on such debt will accrue at 4.25 percent after the Penn Casino opens. Lakes also entered into a 10-year option agreement with Penn that grants Penn the right to purchase about 98 acres of land that Lakes owns adjacent to Jamul's trust land.
