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MEI DIVERSIFIED ANNOUNCES SALE OF SALONS

 MINNEAPOLIS, Dec. 3 /PRNewswire/ -- MEI Diversified Inc., which is currently operating under protection of Chapter 11 of the United States Bankruptcy Code, today announced that it has executed a definitive agreement to sell its United States and Canadian Salon operations to salon operator Magicuts, Inc., of Toronto. The definitive agreement is subject to Bankruptcy Court approval. The Hearing for Bankruptcy Court approval of the sale will be held on Dec. 8, 1993, in Minneapolis. The definitive agreement provides for a purchase price of approximately $30 million, comprised of approximately $10 million in cash and securities, and the balance in the assumption of certain liabilities including all department store lease and license agreements and related obligations thereunder.
 Brian Luborsky, chief executive officer of Magicuts, remarked, "We are extremely pleased with the signing of the definitive agreement and we intend to quickly close the transaction, take immediate action to improve the MEI Salon business, and make these salons the very best in the industry."
 Donald E. Benson, president of MEI Diversified Inc., stated, "As soon as the Bankruptcy Court approval is obtained, we will proceed as quickly as possible to get this transaction closed."
 Magicuts, Inc., a private corporation, is engaged in the operation of hair care salons within department stores in the United States and Canada.
 -0- 12/3/93
 /CONTACT: Robert P. King, 612-936-4201, or James A. Cesario, 612-339-8853, both of MEI Diversified/


CO: MEI Diversified Inc.; Magicuts, Inc. ST: Minnesota IN: REA SU: TNM

AL-DS -- MN003 -- 0123 12/03/93 09:11 EST
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Publication:PR Newswire
Date:Dec 3, 1993
Words:254
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