(Reuters) – Sally Beauty Holdings Inc (SBH.N) said its subsidiary Beauty Systems Group LLC has acquired privately held beauty products distributor Schoeneman Beauty Supply Inc for about $61 million in cash, to enhance its presence in the U.S. Northeast region.
Sally Beauty, which distributes beauty supplies and hair products, expects the transaction to add slightly to earnings per share in 2010.
Cost synergies are expected to be realized upon full integration of Schoeneman, with further additions to earnings per share in 2011, the company said in a statement.
Schoeneman’s full-year 2009 revenue is expected to be in the range of $86 million to $89 million, Sally Beauty said.
Schoeneman, which owns 43 beauty supply stores, is headquartered in Pottsville, Pennsylvania, and employs over 500 people, including over 100 direct sales consultants.
Sally Beauty shares closed at $6.85 Thursday on the New York Stock Exchange. (Reporting by Viraj Nair in Bangalore; Editing by Unnikrishnan Nair)
peHUB Note: Clayton Dubilier & Rice acquired a 48% equity stake in Sally Beauty three years ago for $575 million.