Capstone Partners Advises Blaine Beauty Career Schools on Sale to Regis Corporation

Boston, MA – Capstone Partners LLC, a national middle-market investment banking advisory firm, announced today that it has successfully advised Blaine Beauty Career Schools on its recent acquisition by Regis Corporation (NYSE: RGS), the global leader in the $140 billion hair care industry. The acquisition of Blaine marks Regis’ entrance into the beauty school business. Capstone initiated the transaction, acted as financial advisor, and assisted in the negotiations for the shareholders of Blaine Beauty Career Schools. The terms of this transaction were not disclosed.

John Ferrara, Capstone’s president and managing partner commented, “This transaction reflects escalating consolidation trends in the post-secondary educational market and is a significant event in the cosmetology sector. The synergistic combination of Blaine’s supply of trained professionals and Regis’ growing salon demand is certain to be powerful in the marketplace. Blaine will provide Regis a branded beachhead in the Northeast and Regis will accelerate Blaine’s growth opportunities by leveraging their educational capabilities.”

“We are enthusiastic about entering into the beauty school business, as it adds an incremental revenue stream to our salon business,” commented Paul Finkelstein, chairman and chief executive officer of Regis. “In fact, we believe the beauty school business could eventually be at least a $100 million business for us, with significant earnings.”

Henri Blaine, founder of Blaine Beauty Career Schools added, “This is an exciting time for our employees and students as we are now part of Regis, the leading employer in the salon industry. The combination of Blaine’s strong curriculum and Regis’ managerial expertise will elevate the cosmetology school industry.”

Capstone’s Business Services team identified Blaine as an emerging leader in the post-secondary education and training sector and believed the company’s market position and growth prospects could yield various transaction alternatives. Supported by its research efforts and contact network within the cosmetology industry, Capstone represented Blaine in the capital markets and ultimately delivered what Mr. Blaine considered to be the best available strategic fit.

Blaine Beauty Schools is the premier provider of post secondary, private occupational cosmetology programs in the Northeast and is comprised of an established chain of six schools located in Massachusetts.

Regis Corporation, a Fortune 1000 company, is the largest owner, operator and franchisor of hair and retail product salons in the world. Regis Corporation is located in Minneapolis, Minnesota. The Company’s common stock is traded on the New York Stock Exchange under the symbol RGS.