Sally Beauty acquires European distributor Sinelco
The business was acquired for a cash price of approximately €25.5m ($36.5m) and will primarily serve to expand Sally Beauty’s position in the European hair salon market.
Sinelco Group currently serves more than 1,500 customers in 35 countries from three primary sales and distribution centers in Belgium, France and Italy, from which it supplies virtually every country in Europe, as well as North Africa and the Caribbean.
Distributor of branded beauty products
The distributor markets a range of branded beauty products, for use in salons by beauty professionals as well as consumers, including electrical appliances, accessories and a range of beauty salon supplies.
The company operates its business through its three principle sales offices, as well a comprehensive product category and a website where orders for purchases can also be made.
“The addition of Sinelco, which sources many of its products in Asia, will provide us with the opportunity to sell to distributors of professional products in many countries in which we lack a physical presence,” said Chad Selvidge, vice president of Sally Beauty.
“In addition, approximately 85 per cent of Sinelco’s revenue is generated from their exclusive-label brands, Sibel, Ultron and Bob Tuo. We expect this acquisition to be accretive and to further accelerate our international growth strategy.”
Acquisition expand Sally distribution worldwide
The acquisition builds on the deal Sally Beauty struck back in October of this year to buy professional beauty supply distributor Schoeneman Beauty.
The company paid approximately $61 million in cash for Schoeneman Beauty, but expects cost synergies to be realized upon full integration of the business.
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.
Expanding in Latin America
During the course of the year the company also bought Chilean distributor InterSalon together with Puerto-Rico-based distributor Belleza Concept, as part of its ambitions to expand in the Latin American market.
For its most recent fourth quarter results overall sales came in at $1.7bn, up 1.4 percent from last year. Sally Beauty said the UK was a market particularly badly hit by the negative economic climate.
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.
