Regis, a popular hair salon company, announced it is selling The Hair Club for Men and Women to a Japanese company. Aderans Company bought The Hair Club for $160 million, according to the Wall Street Journal.

Details on the new owner

Aderans made headlines in the late 60s for its successful wigs, now the compnay has expanded to include hair restoration treatments, including the well-known Bosley hair restoration.

Aderans Chairman Nobuo Nemoto said in a recent statement that the company is trying to revamp its business. Currently, Aderans domestic Japanese business and stock performance have been “a source of dismay to shareholders.” Aderans shares have fallen 58% over the past five years and are down 1.4% year to date. Experts hope the purchase of The Hair Club can renew the company’s market growth.

Sellers happy to find buyer

“We believe the sale of Hair Club represents an opportunity to exit a non-core business on attractive terms while taking another significant step in refocusing operational resources on expanding sales, margins and profitability of salon operations,” said Joel Conner, Chairman of the Board in a recent press release. “This agreement, which follows the previously announced agreement to sell Regis’ stake in Provalliance, also represents the significant progress Regis has made in its evaluation of non-core assets. We look forward to continuing to implement our strategy of improving the customer experience in our salons and enhancing shareholder value.”

Regis bought The Hair Club back in 2000 for more than they are selling it. Twelve years ago Regis shelled out $210 million for the company. The sale price to Aderans was $50 million less than Regis paid for it. According to the Wall Street Journal, Regis has suffered during the recession. Its 12,000+ salons haven’t kept up with expectations of shareholders, which influenced the decision to sell The Hair Club.