Sally Beauty buys professional beauty products distributor
According to Gary Winterhalter, CEO of Sally Beauty Holdings, “the Beauty Systems Group segment was built through a series of strategic acquisitions such as Schoeneman.”
Schoeneman Beauty has projected sales revenue in fiscal 2009 in the range of $86-89 million, and currently employs over 500 people, including over 100 direct sales consultants.
With annual revenues of more than $2.6 billion, Sally Beauty, together with Beauty Systems Group, sells and distributes through over 3,700 stores worldwide.
Extended presence in Northeast region
The acquisition, which was made through the Sally Beauty's Beauty Systems subsidiary, is expected to provide the company with a greater presence in the Northeast region of the United States, as Schoeneman owns 43 professional-only beauty supply stores in Pennsylvania, Southern New Jersey, Delaware, and West Virginia.
In turn, the deal now give Sally Beauty the largest channel share in this geographic territory, a region where the company was previously not well represented.
Its distribution reach is further extended to Maryland, Washington D.C., and Northern Virginia through its direct sales consultants.
'Additional value for customers'
By adding Schoeneman’s distribution channels to BSG, the combining of the two companies will “create additional value for customers, suppliers and stockholders,” said John Golliher, president of the Beauty Systems Group.
The company paid approximately $61 million in cash for Schoeneman Beauty, but expects cost synergies to be realized upon full integration of the business.
Sally Beauty Holdings expects the acquisition to have a positive impact on earnings per share in 2010.
