
Regis Corporation Acquires Alline Salon Group for $22 Million, Expanding Revenue and Operational Synergies
Regis Corporation (NasdaqGM: RGS), a leader in the haircare industry, has acquired Alline Salon Group (ASG), its largest franchisee, in a $22 million deal with an additional $3 million earnout potential over three years.
Key Highlights of the Acquisition
- Salon Network: Includes 314 salons under Supercuts, Cost Cutters, Alline Salon and Holiday Hair brands across five states, primarily Michigan, Ohio, and Pennsylvania.
- Financial Metrics (TTM October 2024):
- $83 million in revenue
- $11.1 million in 4-Wall EBITDA
- $5.8 million in EBITDA
- Valuation: Initial purchase price represents 3.79x TTM EBITDA; with earnout potential, the multiple rises to 4.31x TTM EBITDA.
- Synergies: Identified savings of $1.0–1.5 million expected to be realized by 2026.
- Financing: Deal financed at 2.58x TTM EBITDA, maintaining flexibility and balance sheet strength.
Strategic Benefits
- Financial Gains and Value Creation:
- The acquisition is expected to be EBITDA accretive, Alline Salon providing substantial potential for revenue and profitability growth beyond franchise royalties. This additional cash generation opportunity enhances the overall value for Regis and its stakeholders.
- Strengthened Operations and Franchisee Ties:
- By operating salons directly, Regis will gain deeper operational insights, fostering stronger connections with franchisees. This shift allows the company to adapt more quickly to market changes and strengthen its business strategy.
- Innovation Testing Ground:
- Regis will utilize the acquired salon portfolio as a controlled environment for testing customer and stylist initiatives. This ensures that any innovations introduced to franchisees are optimized for success and operational feasibility.
- Scaled Impact Across Brands:
- The acquisition enhances Regis’ ability to drive profitability not only within its corporate-owned but also across the broader franchise system, creating a more unified and scalable impact.
- Operational Flexibility:
- Regis now has the capacity to pursue strategies that benefit both corporate-owned and franchisee operations. The increased flexibility enables faster implementation of changes and responses to market dynamics.
- Collaboration with Alline Team:
- Alline Salon Group’s infrastructure, culture, Alline Salon and team will integrate with Regis’ expertise, creating a synergy that bodes well for future growth.
Leadership Comments
Matthew Doctor, President and CEO of Regis Corporation:
This acquisition is a significant milestone for Regis, Alline Salon providing strong EBITDA growth and strategic benefits. It brings us closer to operations, enabling us to test and implement innovative strategies while continuing to prioritize franchisee success. This transaction represents a win for all stakeholders involved.
Acquisition Highlights
The acquisition includes 314 salons under the Supercuts, Cost Cutters, and Holiday Hair brands, primarily located in Michigan, Ohio, and Pennsylvania. Key financial metrics for the trailing twelve months (TTM) ending October 2024 include $83 million in revenue, $11.1 million in 4-Wall EBITDA, and $5.8 million in EBITDA.
The deal’s initial Alline Salon valuation represents a 3.79x multiple of TTM EBITDA, with the total consideration, including potential earn-out payments, reaching a 4.31x multiple. Identified synergies of $1.0-1.5 million are expected to be realized by 2026. Regis financed the transaction through a mix of cash and stock, maintaining a leverage ratio of 2.58x TTM EBITDA to ensure financial flexibility.
Mike Sarafa, CEO of Alline Salon Group:
The success of this transaction is a testament to our team’s hard work. We’re excited about the future with Regis, which will bring new opportunities and growth for our team and customers.

Transaction Details
- Purchase Terms: $22 million in cash and stock, with $19 million paid upfront and $3 million in stock at closing. Earnout provisions allow for $3 million in performance-based payments over three years.
- Funding: Financed through a $15 million credit agreement increase and $4 million from cash on hand.
- Advisors: Faegre Drinker Biddle & Reath LLP served as legal counsel to Regis, with Greenwich Capital Group as the exclusive financial advisor. Foley & Lardner provided counsel to ASG.
About Regis Corporation
Regis Corporation (NasdaqGM: RGS) is a leading haircare company, franchising or owning over 4,300 locations under brands like Supercuts®, SmartStyle®, Cost Cutters®, Roosters®, and First Choice Haircutters®. For more details, visit www.regiscorp.com.