Regis Corporation (RGS) has announced the acquisition of its largest franchisee, Alline Salon Group, in a deal worth an initial $22 million. Additionally, Alline Salon Group has the potential to earn an extra $3 million, disbursed as $1 million annually over the next three years through earn-out arrangements. Regis financed the cash component of the acquisition using $15 million raised from an expansion of its credit agreement with current lenders, supplemented by $4 million from its available cash reserves.
Regis stated that this acquisition is expected to positively contribute to its adjusted EBITDA, and overall leverage is anticipated to see a slight reduction as a result of the deal.
The material has been provided by InstaForex Company - www.instaforex.com
Regis stated that this acquisition is expected to positively contribute to its adjusted EBITDA, and overall leverage is anticipated to see a slight reduction as a result of the deal.
The material has been provided by InstaForex Company - www.instaforex.com