Alberto-Culver Company announced the $2.6 billion agreement to spin-off Sally Beauty Company, marketer of professional beauty supplies, and merge it with Regis Corporation, a leader in beauty salons, hair restoration centers and beauty education.

The agreement will combine Sally Beauty Company’s 2,419 Sally Beauty stores, 822 Beauty Systems Group outlets and 1,244-person direct sales force with Regis’ 10,952 beauty salons, operated under brand names such as Regis, Supercuts, Vidal Sassoon, SmartStyle and Trade Secret, 90 hair restoration centers and 35 beauty education schools. Sally generated revenues of $2.25 billion and pre-tax operating earnings of $224 million in the fiscal year ended Sept. 30, 2005.

Following the transaction, which is subject to shareholder, routine regulatory and other approvals, Alberto-Culver will be a $1.4 billion global branded consumer products company. Led by its brands Alberto VO5, St. Ives, TRESemme, Nexxus, Motions and Soft & Beautiful and a portfolio of regional brands, Alberto-Culver will focus 100 percent on the company’s branded consumer products business. The operating management team that has led Alberto-Culver Consumer Products Worldwide will remain in place.

The transaction is expected to be completed in late spring or early summer of 2006. More information: www.alberto.com; www.regiscorp.com.