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Table of Contents
PART I
Item 1. Business
Unless the context otherwise provides, when we refer to the "Company," "we," "our," or "us," we are referring to Regis Corporation, the
Registrant, together with its subsidiaries.
General Development of Business
In 1922, Paul and Florence Kunin opened Kunin Beauty Salon, which quickly expanded into a chain of value priced salons located in
department stores. In 1958, the chain was purchased by their son and renamed Regis Corporation. On August 1, 2007, the Company
contributed its 51 wholly-owned accredited cosmetology schools to Empire Education Group, Inc (EEG). On January 31, 2008, the Company
merged its continental European franchise salon operations with the operations of the Franck Provost Salon Group in the newly formed entity,
Provalliance. The Company acquired an additional equity interest in Provalliance in March 2011. On February 20, 2008, the Company acquired
the capital stock of Cameron Capital I, Inc. (CCI), a wholly-owned subsidiary of Cameron Capital Investments, Inc. CCI owned and operated
PureBeauty and BeautyFirst salons. On February 16, 2009, the Company sold its Trade Secret salon concept (Trade Secret), which included
CCI.
During the fiscal year ended June 30, 2012, the Company began reviewing alternatives for non-core assets to focus on our core salon
business. In April 2012, the Company entered into a Share Purchase Agreement (Agreement) to sell the Company's 46.7 percent equity interest
in Provalliance to the Provost Family for a purchase price of €80 million. The transaction is expected to close no later than September 30, 2012
and is subject to the Provost Family securing financing for the purchase price. On July 13, 2012, the Company entered into a definitive
agreement to sell its Hair Club for Men and Women business (Hair Club) for $163.5 million, a provider of hair restoration services. The
transaction is expected to close during the first half of fiscal year 2013.
Regis Corporation is listed on the NYSE under the ticker symbol "RGS." Discussions of the general development of the business take
place throughout this Annual Report on Form 10-K.
Financial Information about Segments
Segment data for the years ended June 30, 2012, 2011 and 2010 are included in Note 15 to the Consolidated Financial Statements in
Part II, Item 8, of this Form 10-K.
3