LONDON, UK / ACCESSWIRE / October 4, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Regis Corp. (NYSE: RGS), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=RGS. The Company, which is a leader in beauty salons and cosmetology education, announced on October 02, 2017 that it has sold a majority of its mall-based salon business in North America and entered into an agreement to sell substantially all of its International segment to The Beautiful Group, which is an affiliate of Regent. Regis' primary business is operating and franchising hair salons. As per the transaction terms, The Beautiful Group would operate the salons as the largest franchisee of Regis. For immediate access to our complimentary reports, including today's coverage, register for free now at:

http://protraderdaily.com/register/

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on RGS. Go directly to your stock of interest and access today's free coverage at:

http://protraderdaily.com/optin/?symbol=RGS

Transaction Comprises Over 1,000 Salons

  • The transaction comprises 858 full-service mall-based North America Regis Salons and MasterCuts locations. The transaction also includes intellectual property related to MasterCuts and certain other trade names.

  • The above-mentioned transaction also includes 250 Regis Salons and Supercuts salons in the UK.

  • Consequently, over 9,800 stylists and managers working in the salons covered under the deal will become employees of The Beautiful Group and its affiliates. Existing field leaders in the mall-based and International segments would also become part of The Beautiful Group.

Strategic Rationale

Hugh Sawyer, President and Chief Executive Officer at Regis, shared his thoughts about the transaction. He stated that Regis had engaged Huron Transaction Advisory to provide financial and investment banking services and to assist the Company in the review of strategic alternatives for its mall-based businesses in May 2017.

After a thoughtful diagnosis of the current situation and all possible alternatives, the Company has reached this strategic conclusion, which is in the best interest of its shareholders, employees as well as guests. Sawyer highlighted that the transaction would further strengthen Regis Corporation's strategy by focusing its Company-owned salon portfolio in North America on the value segment. Regis Salons was the Company's flagship and one of its more upscale brands while MasterCuts was one of several value brands, a segment that also included Cost Cutters and SmartStyle. Moreover, this move is also in-line with the Company's strategic imperative to accelerate the growth of its Franchise portfolio. Regis has been struggling with declining sales, especially at its company-owned stores. On the other hand, franchise revenue has been increasing lately.

An Ideal Partnership for Regis

Hugh Sawyer also expressed that he is fortunate to have found an ideal partner in Regent's Chairman Michael Reinstein. Reinstein is renowned for his remarkable record of success as a business owner with well-known companies. The franchising agreement enables Regis to sustain its salons and employees as part of the Regis family of brands. Sawyer expressed his excitement about Reinstein's vision of developing the salon business into a luxury brand through superior experience for customers as well stylists. He looks forward to a long-term, mutually beneficial relationship with the Regent team.

Regent is a Los Angeles based private equity firm which focuses on transforming businesses. Its strategy is to partner with management teams to create value through operational improvements. Regent operates across numerous industry verticals while its investments span across the globe.

Transaction Closing

Regis expects the International segment transaction to close in October 2017.

Advisors for the Transaction

  • For this transaction, Huron Transaction Advisory, Huron Business Advisory, Ropes & Gray, DLA Piper, Wachtell Lipton and Quastel Midgen served as the advisors to Regis.

  • On the other hand, Morgan, Lewis & Bockius and Steinbrecher & Span advised Regent.

About Regis Corp.

As on June 30, 2017, Regis owned, franchised, or held ownership interests in 9,008 locations worldwide. Regis' corporate and franchised locations operate under concepts such as Supercuts, SmartStyle, MasterCuts, Regis Salons, Sassoon Salon, Cost Cutters, Roosters and First Choice Haircutters. The Company also maintains an ownership interest in Empire Education Group in the US.

Last Close Stock Review

At the closing bell, on Tuesday, October 03, 2017, Regis' stock slightly dropped 0.26%, ending the trading session at $15.25. A total volume of 514.89 thousand shares have exchanged hands, which was higher than the 3-month average volume of 217.40 thousand shares. The Company's stock price soared 50.54% in the last three months, 35.80% in the past six months, and 21.90% in the previous twelve months. Moreover, the stock gained 5.03% since the start of the year. The stock currently has a market cap of $719.65 million.

Pro-Trader Daily:

Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charter holder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: contact@protraderdaily.com

Phone number: (917) 341.4653

Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Pro-Trader Daily