M&A
confidence high
sentiment positive
materiality 0.75
REGIS CORP (RGS): M&A transaction — Regis acquires Alline Salon Group for $22M; adds $83M revenue, $5.8M EBITDA
REGIS CORP
- Initial consideration $22M ($19M cash + $3M stock); 140,552 shares issued; 1-yr lock-up.
- Potential earnout up to $3M ($1M/yr for 2025-2027) based on financial metrics.
- Purchase multiple ~3.79x TTM EBITDA; $1.0-1.5M synergies expected by 2026.
- Financed via $15M incremental term loan upsized from existing credit agreement plus $4M cash.
- Acquired 314 salons (Supercuts, Cost Cutters, Holiday Hair); 93% of salons remain franchised.