Alberto-Culver has agreed to a $2.6 billion deal to spin-off Sally Beauty Co., a marketer of professional beauty supplies, and merge it with Regis Corp., a player in beauty salons, hair restoration centers and beauty education. The agreement will combine Sally Beauty’s 2,419 Sally Beauty stores, 822 Beauty Systems Group outlets and 1,244-person direct sales force with Regis’ 10,952 beauty salons, 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 that 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. 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.