Hair care products maker Alberto-Culver Co. said yesterday it will spin off its Sally Beauty business into a separately traded company after its sale to Regis Corp. fell apart earlier this year.
The unit, the world's biggest seller of professional beauty supplies, will become a stand-alone company called Sally Beauty Co., operating 2,465 Sally Beauty stores, 825 Beauty Systems Group outlets and 1,181 sales employees. It generated $2.3 billion in sales for the 12 months ended March 31, with pretax operating earnings of $244 million.
The spinoff will leave Alberto-Culver with its core consumer products business, which generated revenue of $1.4 billion and pretax operating earnings of nearly $140 million in the 12 months ended March 31. The company said the move will help it focus on its Alberto VO5, St. Ives, Nexxus and other consumer brands.
