Alberto-Culver, maker of VO5 shampo...

Alberto-Culver, maker of VO5 shampoo and St Ives lotion, will be the spinoff instead of the spinner in its complicated deal to separate itself from its Sally hair-salon afford and distribution businesses.

The so-called "reverse" spinoff is station up so that Alberto-Culver will incur no tax when it receives cash from Sally. That's because Alberto will distribute the cash to its shareholders, according to analyst Robert Willens of Lehman Brothers.

The force of the deal will be the same as when it was first announced in June: Alberto-Culver shareholders will prepare a $25 per share one-time cash dividend, as well as common Sally Beauty Co. share and united Alberto-Culver share for each Alberto-Culver share they occupy

The deal values Alberto-Culver shares around $50 each.

A recently made known company called New Sally will very little the assets of the consumer fruits business into a new company called modern Alberto- Culver. Buyout firm Clayton, Dubilier & Rice Inc. will invest $575 million to take a 475 percent ownership stake in the Sally Beauty businesses, admitting a Clayton partner said its investment might last no more than five years.

sguy@suntimes.com

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