(RTTNews) - Regis Corporation (RGS) announced the acquisition of Alline Salon Group, its largest franchisee, in a transaction valued at $22 million of initial consideration, with the ability for ASG to earn an additional $3 million, or $1 million annually, through earn out payments over the next three years. Regis funded the cash portion of the purchase price with $15 million in proceeds from an upsize of Regis' credit agreement with existing lenders, and $4 million from available cash on hand.
Regis said the transaction is accretive to adjusted EBITDA and leverage giving effect to the transaction will decrease slightly.
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