MELROSE PARK, Ill., Dec. 1 /PRNewswire-FirstCall/ -- The Alberto-Culver Company today announced a reorganization following its recent separation from Sally Beauty Holdings, Inc. into a separate, publicly-traded company.
V. James Marino, President & Chief Executive Officer of the company, commented, "Alberto-Culver has always prided itself on being a lean and nimble organization, so the changes that were needed are not dramatic. This represents a right-sizing, looking primarily at those areas that related to services we were maintaining in support of Sally and corporate activities that could be scaled back to match the needs of a smaller company."
As part of the reorganization, two marketing units will be combined into a single unit and some specific international services will be outsourced or combined into regional offices according to Mr. Marino. He said that all personnel impacted by the changes had been notified and that this reorganization and the financial charges related to it would be substantially completed by the end of the fiscal year 2007 second quarter. The Company's worldwide workforce of approximately 3,800 will be reduced by approximately 90 as a result of the changes. The Company expects to take restructuring charges of approximately $13 million and $3 million in its fiscal year 2007 first and second quarters, respectively, related to the reorganization.
These expected restructuring charges are in addition to other first quarter charges related to the separation transaction that were previously announced including lump sum payments totaling approximately $14 million to its former president and chief executive officer and the former chairman of Sally Beauty and a non-cash charge of approximately $18 million for the acceleration of stock options and restricted stock as of the closing date of the separation transaction. A portion of these previously disclosed charges, along with expenses incurred in connection with the separation transaction, will be included in discontinued operations in Alberto-Culver's fiscal year 2007 statement of earnings.
The Company also noted that it plans to sell its corporate airplane in early 2007 and that it expects to close its manufacturing facility in Dallas, Texas by the end of 2007.
Alberto-Culver Company manufactures, distributes and markets leading personal care products including Alberto VO5, St. Ives, TRESemme and Nexxus in the United States and internationally. Several of its household/grocery products such as Mrs. Dash and Static Guard are niche category leaders in the U.S. Its Pro-Line International unit is the second largest producer in the world of products for the ethnic hair care market with leading brands including Motions and Soft & Beautiful. Its Cederroth International unit is a major consumer goods marketer in the Nordic countries.
Alberto-Culver Company
CONTACT: Doug Craney of Alberto-Culver Company, +1-708-450-3117
