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Sally Beauty's (SBH) La Maison Ami-Co Buyout to Boost Growth

Sally Beauty Holdings, Inc. SBH is focused on expanding its business in the Canadian region. In this context, the company’s subsidiary Beauty Systems Group (BSG) acquired La Maison Ami-Co Inc. — a professional beauty products distributor in the Canadian province of Quebec.

Per the deal, Sally Beauty will acquire 10 La Maison Ami-Co stores. Also, this transaction will add 17 direct sales consultants and exclusive distribution rights to leading professional hair color and hair care brands like Wella Professional, Oribé and Goldwell across Quebec.

Sally Beauty expects the deal to augment its business in Quebec along with increasing the reach of BSG’s professional beauty products in its Chalut store network as well as full-service business. Notably, Sally Beauty’s BSG had acquired certain H. ChalutLtée assets in December 2017, enabling it to expand its business for the first time in Quebec province, giving BSG a footprint in Canada.


Well, Sally Beauty is committed to the Canada-based stylist community as well as hair color, nail, hair care and beauty customers. Notably, its BSG already has 122 professional wholesale stores under the CosmoProf and Chalut brands in Canada. Also, the company’s retail division — Sally Beauty Supply—operates 140 retail stores that sell various salon and beauty products across Canada.

Also, Sally Beauty informed that it had expanded its retail beauty offerings to 4,100 products on the new website sallybeauty.ca across Canada. Further, the company expanded its ship-from-store e-commerce distribution points to nine provinces to reduce delivery times in Canada.

We note that Sally Beauty has been undertaking a number of efforts to augment its online space to keep pace with the evolving shopping trends. Notably, the company launched digital operations in Canada along with ship-from-store in 16 stores across the region in March. Sally Beauty also expanded its ship-from-store as well as same-day delivery options in the United States. Further, Sally Beauty replatformed its French and German digital sites to boost business in the United Kingdom.

The company is witnessing higher consumer demand on digital platforms and addition of increased number of new consumers online amid the coronavirus outbreak. These trends drove its e-commerce sales that increased significantly from the year-ago quarter’s levels in the third quarter of fiscal 2020.

Shares of this Zacks Rank #3 (Hold) company have gained 8.9% in the past six months compared with the industry’s growth of 65.1%.

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