July 23, 2012
/PRNewswire/ -- Clayton, Dubilier & Rice (together with its affiliates, "CD&R") today announced total proceeds of
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
, and a share repurchase by Sally in
, at an average price of
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.
, CD&R invested
to acquire approximately 47.5% of Sally Beauty Holdings, Inc., valued at
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."