Shareholders Approve Spin-Off Of Alberto-Culver Distribution Business
This article was originally published in The Rose Sheet
Executive Summary
Alberto-Culver is on track to become a $1.4 bil. consumer product business after shareholders approved the spin-off of its distribution businesses Sally Beauty Company and Beauty Systems Group Nov. 10
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Sally Beauty on its own
Alberto-Culver's separation of its consumer products business and its distribution business for professional beauty supplies is complete, resulting in two separate, publicly traded entities, firm announces in Nov. 16 release. Newly independent Sally Beauty Holdings - consisting of specialty retailer Sally Beauty Supply and distributor Beauty Systems Group that provide professional beauty products to retail consumers and salons - will be headed by Gary Winterhalter as president and CEO. The separation was approved by Alberto-Culver shareholders Nov. 10 after a merger agreement with Regis Corporation fell through in April (1"The Rose Sheet" Nov. 13, 2006, p. 7). Going forward, Sally Beauty is "seeing a large and addressable market, stable and consistent industry growth, favorable underlying demographic trends, a highly fragmented customer base and a limited number of sizeable direct competitors," Winterhalter says...
Sally Beauty on its own
Alberto-Culver's separation of its consumer products business and its distribution business for professional beauty supplies is complete, resulting in two separate, publicly traded entities, firm announces in Nov. 16 release. Newly independent Sally Beauty Holdings - consisting of specialty retailer Sally Beauty Supply and distributor Beauty Systems Group that provide professional beauty products to retail consumers and salons - will be headed by Gary Winterhalter as president and CEO. The separation was approved by Alberto-Culver shareholders Nov. 10 after a merger agreement with Regis Corporation fell through in April (1"The Rose Sheet" Nov. 13, 2006, p. 7). Going forward, Sally Beauty is "seeing a large and addressable market, stable and consistent industry growth, favorable underlying demographic trends, a highly fragmented customer base and a limited number of sizeable direct competitors," Winterhalter says...
Sales & Earnings In Brief
Alberto-Culver: Global Consumer Product sales rose 9.9% to $376.8 mil. for the fourth quarter (ended Sept. 30), while full-year sales of the division improved 9.3% to $1.43 bil., fueled by the performance of the Nexxus and Tresemme hair care brands and heavy advertising investments, Alberto-Culver announces Oct. 26. The company noted St. Ives and VO5 reported "encouraging" results, with both brands in the midst of restages intended to "pump some life" into the lines, firm says. Alberto spent $306 mil. on advertising in 2006, an increase of 17.4% from the prior-year period. Net sales increased 8.2% to $974.3 mil. and earnings rose 11.7% to $65.8 mil. including non-core items. For the year, revenues grew 6.8% to $3.77 bil., while earnings fell 2.6% to $205.3 mil...