Sally Beauty Holdings, Inc. has announce the acquisition of Aerial Company, Inc. by its subsidiary Beauty Systems Group LLC (BSG). The addition of Aerial will extend BSG’s distribution reach and breadth of professional beauty product offerings in the Midwest region of the U.S.

“Aerial is a leading distributor in the professional beauty products industry,” says Gary Winterhalter, CEO of Sally Beauty Holdings. “The addition of Aerial will compliment BSG’s portfolio and expand its geographic footprint in the Midwest, directly supporting our objective to grow Sally Beauty Holdings over the long-term.”

Aerial was founded in 1912 and is based in Marinette, Wisconsin. The company employs over 700 people, including over 70 direct sales consultants. Sales revenue in fiscal 2009 was approximately $100 million. The company owns 82 professional-only beauty supply stores located in Wisconsin, Northern Illinois, Kansas, Michigan, Minnesota, Missouri, Iowa, Nebraska, Colorado, and North and South Dakota. The company operates two distribution centers, one in Marinette, Wisconsin, and one in Lincoln, Nebraska.

“This acquisition is consistent with our strategy to extend our reach in U.S. geographies where we do not already have a strong presence,” adds John Golliher, president of BSG. “We believe the addition of Aerial will strengthen our position in this important region of the U.S. and create additional value for our customers, suppliers, and our stockholders.”

Ryan Hmielewski, president of Aerial Company, Inc., states, “We are pleased to join the BSG team to achieve our goal of becoming the professional beauty industry’s best full-service distributor. I look forward to the new opportunities of the combined companies.”

Sally Beauty Holdings paid $70 million, net of the present value of the future incremental tax benefit expected to be realized by the company from the transaction. The acquisition is expected to be slightly accretive, post integration costs, to Sally Beauty Holdings’ earnings per share in fiscal year 2011. Cost synergies are expected to be realized upon full integration of Aerial, and the company projects further accretion to Sally Beauty Holdings’ earnings per share in fiscal year 2012.