US-European salons in big hair merger

Regis has been on a salon buying spree

The world's largest group of hairdressers, Regis of the US, has said it is to buy Europe's largest hair salon chain, Jean Louis David.

Combined, the two chains will operate almost 10,000 hairdressing salons in eight countries.

JLD was looking to sell his business

Regis has 8,600 salons in the US, while Jean Louis David has 1,200 salons in Europe, Brazil and the US.

"With over 360 million potential customers in Europe, the Jean Louis David acquisition will provide us with long-term growth opportunities in Europe and beyond," said chief executive Paul Finkelstein.

Analysts said the deal was a good move by Regis.

"Their US business is moving along just fine, and this allows them to build the same kind of brand name presence in Europe that they have (in the US)," said Christopher Krueger, an analyst at Dougherty & Co.

Regis did not disclose the terms of the deal which will make it the largest franchiser of salons in Europe.

Encroaching hairline

Minneapolis-based Regis, which has completed 221 acquisitions adding 6,230 salons since 1996, said franchising internationally provides it with a "low-risk, higher-margin growth strategy that requires little additional capital."

Regis operates a variety of brands including Regis Salons, MasterCuts, Trade Secret and SmartStyle.

"We are the logical exit strategy for most owners if they want to get out of the business," said Randy Pearce, Regis chief financial officer.

"Jean Louis David is a real person who was in this business for over 30 years and wanted to get out."