Edina-based Regis Corporation on Tuesday announced that it has invested in Roosters Men's Grooming Center, a Warren, Michigan-based salon franchise that offers services ranging from men's haircuts to seven-step shaves, which include hot steam towels and a deep-cleansing facial massage.
Financial terms of the transaction, which was completed on July 1, were not disclosed. Regis spokeswoman Susan Evans told Twin Cities Business that the deal gives Regis "controlling interest in the partnership." Roosters has 35 franchised salons in 15 states and plans to open 40 more salons by the end of next June.
"Roosters is a terrific complement to Regis' family of brands, including our RAZE for Men and Pro Cuts concepts," Regis President Randy Pearce said in a statement. Pearce said that the deal "is not a significant economic investment for Regis" but will help grow its presence in the men's hair-care market.
Roosters' existing management team will continue to lead the company. Founder Kurt Landwehr will join Regis as head of franchise development.
News of the acquisition comes a few months after Regis announced several leadership changes.
Pearce was named president in February, succeeding Paul Finkelstein. Finkelstein remains chairman of the board and CEO through 2011; starting in 2012, he'll serve only as executive chairman. Evans told Twin Cities Business on Thursday that the company has not yet disclosed who will take the helm as Regis CEO beginning next year.
Those changes came several months after the company announced that it would begin >exploring "strategic alternatives"-prompting rumors of a possible sale or the substantial alteration of the company's business or strategy. In December, the company said it would continue with its existing business plan and remain an independent public company.
Under Finkelstein's leadership, the company aggressively accumulated chains of salons.
Regis operates more than 12,700 salons, cosmetology education centers, and hair restoration centers worldwide-including franchised locations. Those locations operate under numerous brands, including-in addition to its namesake salons-Supercuts, MasterCuts, Cost Cutters, and Hair Club for Men and Women.