BLOOMFIELD HILLS, MICH. — Vision Growth Partners has entered into an agreement to acquire 65 salons in Michigan from Regis Corp. (NYSE: RGS).
The store acquisitions will take place in small groups and will be completed by spring 2019. Financial terms of the transaction were not disclosed.
The stores are currently branded as BoRics, Hair Masters and Fiesta Salons, but will transition into Supercuts franchises upon acquisition. The agreement also includes 13 existing Supercuts corporate stores. Super C Group LLC, an entity managed by Vision Growth Partners, will operate the salons.
In addition to the acquisitions, Super C Group plans to open 10 new Supercuts locations in Michigan over the next several years, making the entity the largest Supercuts franchisee in the Midwest.
“We are very excited to enter the salon space in a significant way in our home state of Michigan,” said Michael Sarafa, managing partner of Vision Growth and Super C Group. “Regis is a great partner with great employees, and we look forward to growing the Supercuts brand and building a culture of teamwork and success.”
Over the next 10 months, Super C Group will renovate the acquired properties. The investment level will vary by location, but Crain’s Detroit Business reports the company will spend an average of $50,000 per store. Renovations will include new signage and a complete overhaul of the salons’ interiors.
Based in Bloomfield Hills, Vision Growth Partners specializes in the acquisition of service-oriented businesses with a primary focus on the retail, healthcare, professional services and sales organization sectors. Its subsidiary, Super C Group, is based in Birmingham, Mich.
Minneapolis-based Regis Corp. is a leader in beauty salons and cosmetology education. As of March 31, 2018, the company owned, franchised or held ownership interests in 8,228 worldwide locations. Regis’ corporate and franchised locations operate under banners such as Supercuts, SmartSyle, MasterCuts, Regis Salons, Sassoon, Cost Cutters, Roosters and First Choice Haircutters.
Regis’ stock price closed at $21.37 per share on Friday, Aug. 31, up from $13.03 per share a year ago.
— Camren Skelton