Regis Corporation, the global leader in the $160 billion haircare industry, has agreed to increase its ownership stake in Provalliance, the largest hair salon company in Europe. Under the terms of the agreement, Regis will pay approximately $56.0 million to secure an additional 17 percent ownership interest, bringing its total equity position in Provalliance to 46 percent.
“We are extremely excited to expand our ownership interest in Provalliance. We originally partnered with Franck Provost in January, 2008 and we are very satisfied with the execution of the business plan we jointly developed. The Provalliance business model is proven and the management team is established and experienced. The business is primarily franchised and has high margins and low capital investment requirements. Their brand recognition and profitability has been enhanced through their strong partnerships with the world’s largest professional product companies. By increasing our ownership in Provalliance, we have the platform to participate in international growth, thereby further solidifying our position as the world’s largest operator of hair salons,”says Paul D. Finkelstein, Chairman and Chief Executive Officer, Regis.
Provalliance, which operates salons primarily under the brands of Jean Louis David, Franck Provost and Saint Algue is led by its founder and Chairman, Franck Provost, and Marc Aublet, President. Founded in 1975, Provalliance currently owns or franchises approximately 2,500 hair salons in 33 countries with annual revenues of over $275 million and system-wide sales exceeding $1 billion.