CD&R’s Sally Beauty to expand with $61m deal

The publicly listed professional beauty supply retailer will roll Schoeneman Beauty into a subsidiary platform.

Sally Beauty Holdings, the world's largest professional beauty supply retailer, is continuing to grow via strategic acquisitions.

The Clayton Dubilier & Rice-backed firm will pay $61 million in cash to purchase Schoeneman Beauty Supply and roll it into its subsidiary, Beauty Systems Group.

Sally Beauty: still growing

“We utilised some of our available cash to fund the acquisition, but still have ample liquidity to grow organically and pay down debt. In fact, during the fiscal 2009 fourth quarter, we made an optional repayment of $20 million on our term loan facilities,” Gary Winterhalter, Sally Beauty’s chief executive, said in a statement.

Pennyslvania-based Schoeneman, which is projecting 2009 revenues in the $86 million to $89 million range, has more than 500 employees, including more than 100 direct sales consultants.

CD&R purchased a 47.5 percent stake in Sally Beauty in 2006 when it was spun out from a parent division and listed on the New York Stock Exchange. The transaction included $575 million in equity from New York-based CD&R and $1.85 billion in debt from Merrill Lynch.

Sally Beauty operates 2,700 stores worldwide.