Denton, Texas Sally Beauty Holdings said Friday that it purchased beauty products distributor Schoeneman Beauty Supply for about $61 million as part of its long-term growth strategy.
The beauty-supply retailer said it used some of its cash on hand to pay for the deal.
Pottsville, Pa.-based Schoeneman's fiscal 2009 sales are expected to be about $86 million to $89 million. It has 43 professional-only beauty-supply stores located in Pennsylvania, Southern New Jersey, Northern Delaware and West Virginia, and more than 500 employees.
"We expect this combination to provide us with a greater opportunity to compete in Pennsylvania, Southern New Jersey, Delaware and West Virginia," Beauty Systems group president John Golliher said in a statement.
Schoeneman will become part of the Beauty Systems Group, a Sally Beauty subsidiary.