Regis Corp. (RGS: Quote) said it agreed with members of the Provost family to sell its minority ownership interest in Provalliance, the largest hair salon company in Europe.
As per the terms of the agreement, Regis will receive 80 million euros in cash. The transaction is expected to close prior to September 30, 2012 and is subject to the Provost family securing financing for the purchase price.
In connection with the agreement, Regis concluded that an after-tax, non-cash net impairment charge, ranging between $15 million and $18 million, related to its investment in Provalliance will be recorded in its third fiscal quarter of 2012. Prior to the impairment charge, Regis' net investment in Provalliance was around 92 million euros.
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by RTT Staff Writer
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