Sally Beauty (SBH) Announces 15M Million Common Offering; to Buy Back $200M from Stockholder

May 7, 2012 4:41 PM EDT
Sally Beauty Holdings, Inc. (NYSE: SBH) announced the underwritten public offering of 15,000,000 shares of its common stock held by investment funds associated with Clayton, Dubilier & Rice, LLC pursuant to the Company’s shelf registration statement filed with the Securities and Exchange Commission. The CDR Investors currently own 45,662,971 shares of common stock, or approximately 24.4% of the common stock of the Company (before giving effect to the offering and the share repurchase referenced below). The Company will not receive any proceeds related to the offering, and its total number of shares of common stock outstanding will not change as a result of the offering.

In addition, the Company announced that it agreed to repurchase approximately $200 million of its common stock directly from the CDR Investors, the selling stockholders in the offering, concurrently with the closing of the offering. The share repurchase will be effected in a private, non-underwritten transaction at a price per share equal to the price per share being paid by the underwriter to the CDR Investors in the offering. The Company expects to use borrowings under its revolving credit facility and cash on hand to fund the share repurchase. The closing of the share repurchase is contingent on the closing of the offering. The closing of the offering is not contingent on the closing of the share repurchase.

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