This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Clayton, Dubilier & Rice Exits Sally Beauty Investment

Stocks in this article: SBH

NEW YORK, July 23, 2012 /PRNewswire/ -- Clayton, Dubilier & Rice (together with its affiliates, "CD&R") today announced total proceeds of $1.9 billion from its 2006 investment in Sally Beauty Holdings, Inc. (NYSE: SBH) ("Sally").  Including a secondary offering completed today, CD&R affiliated funds sold all of their 86 million Sally common shares in four underwritten offerings in October 2011, February 2012, May 2012 and July 2012, and a share repurchase by Sally in May 2012, at an average price of $22.68.

Under CD&R's ownership, revenues and EBITDA for Sally increased 49% and 101%, respectively, while margins expanded 430 basis points. Sally pursued a number of initiatives to drive earnings growth, including initiatives focused on improving sales productivity at the Company's 4,400-store network, accelerating new store openings, augmenting profitability, growing internationally, and strategically making acquisitions.

In November 2006, CD&R invested $571 million to acquire approximately 47.5% of Sally Beauty Holdings, Inc., valued at $6.66 per share, from The Alberto-Culver Company in an innovative leveraged spin-off transaction.  All remaining shares were spun off to then-current Alberto-Culver shareholders.  Post-initial investment, CD&R became the largest single shareholder.  CD&R Partners Richard J. Schnall and Kenneth A. Giuriceo served as Directors of Sally Beauty, and CD&R Operating Partner James G. Berges served as Chairman.

"Sally Beauty involved the complex carve-out of a non-core distribution business," said Mr. Schnall.  "The company's strong performance during our ownership was underpinned by solid execution of key operational improvement initiatives, including increasing customer traffic, expanding gross margins and growing the business internationally."

Mr. Giuriceo added: "We are very proud of our association with Sally Beauty and wish the very talented management team continued success as it continues to drive earnings through a combination of top line growth and efficiency initiatives."   

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,787.20 +9.05 0.05%
S&P 500 2,067.13 +5.90 0.29%
NASDAQ 4,757.1030 +8.7070 0.18%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs