SECURITIES & EXCHANGE COMMISSION
Washington, D.C. 20549
----------------------
SCHEDULE 13G
Under the Securities Exchange Act of 1934
(Amendment No. )*
SALLY BEAUTY COMPANY, INC.
(Name of Issuer)
Common Stock
(Title of Class of Securities)
79546E104
(CUSIP Number)
June 8, 2007
(Date of event which requires filing of this statement)
Check the appropriate box to designate the rule pursuant to which this
Schedule 13G is filed:
[ ] Rule 13d-1(b)
[X] Rule 13d-1(c)
[ ] Rule 13d-1(d)
*The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which would
alter the disclosures provided in a prior cover page.
The information required in the remainder of this cover page shall not be
deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act
of 1934 ("Act") or otherwise subject to the liabilities of that section of the
Act but shall be subject to all other provisions of the Act (however, see the
Notes).
(Page 1 of 14 Pages)
CUSIP No. 79546E104 13G Page 2 of 14 Pages
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(1) NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO.
OF ABOVE PERSONS (ENTITIES ONLY)
O.S.S. Capital Management LP
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [X]
(b) [ ]
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(3) SEC USE ONLY
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(4) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware, USA
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NUMBER OF (5) SOLE VOTING POWER
-0-
SHARES --------------------------------------------------------------
BENEFICIALLY (6) SHARED VOTING POWER
9,229,300
OWNED BY --------------------------------------------------------------
EACH (7) SOLE DISPOSITIVE POWER
-0-
REPORTING --------------------------------------------------------------
PERSON WITH (8) SHARED DISPOSITIVE POWER
9,229,300
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(9) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
9,229,300
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(10) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (9) EXCLUDES CERTAIN SHARES ** [ ]
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(11) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (9)
5.1%
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(12) TYPE OF REPORTING PERSON **
PN
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** SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 79546E104 13G Page 3 of 14 Pages
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(1) NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO.
OF ABOVE PERSONS (ENTITIES ONLY)
Ooscar S. Schafer & Partners I LP
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [X]
(b) [ ]
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(3) SEC USE ONLY
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(4) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware, USA
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NUMBER OF (5) SOLE VOTING POWER
-0-
SHARES --------------------------------------------------------------
BENEFICIALLY (6) SHARED VOTING POWER
364,763
OWNED BY --------------------------------------------------------------
EACH (7) SOLE DISPOSITIVE POWER
-0-
REPORTING --------------------------------------------------------------
PERSON WITH (8) SHARED DISPOSITIVE POWER
364,763
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(9) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
364,763
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(10) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (9) EXCLUDES CERTAIN SHARES ** [ ]
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(11) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (9)
0.2%
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(12) TYPE OF REPORTING PERSON **
PN
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** SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 79546E104 13G Page 4 of 14 Pages
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(1) NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO.
OF ABOVE PERSONS (ENTITIES ONLY)
Oscar S. Schafer & Partners II LP
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [X]
(b) [ ]
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(3) SEC USE ONLY
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(4) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware, USA
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NUMBER OF (5) SOLE VOTING POWER
-0-
SHARES --------------------------------------------------------------
BENEFICIALLY (6) SHARED VOTING POWER
3,928,996
OWNED BY --------------------------------------------------------------
EACH (7) SOLE DISPOSITIVE POWER
-0-
REPORTING --------------------------------------------------------------
PERSON WITH (8) SHARED DISPOSITIVE POWER
3,928,996
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(9) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
3,928,996
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(10) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (9) EXCLUDES CERTAIN SHARES ** [ ]
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(11) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (9)
2.2%
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(12) TYPE OF REPORTING PERSON **
PN
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** SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 79546E104 13G Page 5 of 14 Pages
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(1) NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO.
OF ABOVE PERSONS (ENTITIES ONLY)
O.S.S. Overseas Fund Ltd.
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [X]
(b) [ ]
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(3) SEC USE ONLY
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(4) CITIZENSHIP OR PLACE OF ORGANIZATION
Cayman Islands
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NUMBER OF (5) SOLE VOTING POWER
-0-
SHARES --------------------------------------------------------------
BENEFICIALLY (6) SHARED VOTING POWER
4,741,986
OWNED BY --------------------------------------------------------------
EACH (7) SOLE DISPOSITIVE POWER
-0-
REPORTING --------------------------------------------------------------
PERSON WITH (8) SHARED DISPOSITIVE POWER
4,741,986
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(9) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
4,741,986
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(10) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (9) EXCLUDES CERTAIN SHARES ** [ ]
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(11) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (9)
2.6%
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(12) TYPE OF REPORTING PERSON **
CO
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** SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 79546E104 13G Page 6 of 14 Pages
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(1) NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO.
OF ABOVE PERSONS (ENTITIES ONLY)
O.S.S. Advisors LLC
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [X]
(b) [ ]
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(3) SEC USE ONLY
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(4) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware, USA
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NUMBER OF (5) SOLE VOTING POWER
-0-
SHARES --------------------------------------------------------------
BENEFICIALLY (6) SHARED VOTING POWER
4,293,759
OWNED BY --------------------------------------------------------------
EACH (7) SOLE DISPOSITIVE POWER
-0-
REPORTING --------------------------------------------------------------
PERSON WITH (8) SHARED DISPOSITIVE POWER
4,293,759
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(9) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
4,293,759
-----------------------------------------------------------------------------
(10) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (9) EXCLUDES CERTAIN SHARES ** [ ]
-----------------------------------------------------------------------------
(11) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (9)
2.4%
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(12) TYPE OF REPORTING PERSON **
OO
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** SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 79546E104 13G Page 7 of 14 Pages
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(1) NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO.
OF ABOVE PERSONS (ENTITIES ONLY)
Schafer Brothers LLC
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [X]
(b) [ ]
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(3) SEC USE ONLY
-----------------------------------------------------------------------------
(4) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware, USA
-----------------------------------------------------------------------------
NUMBER OF (5) SOLE VOTING POWER
-0-
SHARES --------------------------------------------------------------
BENEFICIALLY (6) SHARED VOTING POWER
9,229,300
OWNED BY --------------------------------------------------------------
EACH (7) SOLE DISPOSITIVE POWER
-0-
REPORTING --------------------------------------------------------------
PERSON WITH (8) SHARED DISPOSITIVE POWER
9,229,300
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(9) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
9,229,300
-----------------------------------------------------------------------------
(10) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (9) EXCLUDES CERTAIN SHARES ** [ ]
-----------------------------------------------------------------------------
(11) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (9)
5.1%
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(12) TYPE OF REPORTING PERSON **
OO
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** SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 79546E104 13G Page 8 of 14 Pages
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(1) NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO.
OF ABOVE PERSONS (ENTITIES ONLY)
Oscar S. Schafer
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [X]
(b) [ ]
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(3) SEC USE ONLY
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(4) CITIZENSHIP OR PLACE OF ORGANIZATION
United States
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NUMBER OF (5) SOLE VOTING POWER
-0-
SHARES --------------------------------------------------------------
BENEFICIALLY (6) SHARED VOTING POWER
9,229,300
OWNED BY --------------------------------------------------------------
EACH (7) SOLE DISPOSITIVE POWER
-0-
REPORTING --------------------------------------------------------------
PERSON WITH (8) SHARED DISPOSITIVE POWER
9,229,300
-----------------------------------------------------------------------------
(9) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
9,229,300
-----------------------------------------------------------------------------
(10) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (9) EXCLUDES CERTAIN SHARES ** [ ]
-----------------------------------------------------------------------------
(11) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (9)
5.1%
-----------------------------------------------------------------------------
(12) TYPE OF REPORTING PERSON **
IN
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** SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 79546E104 13G Page 9 of 14 Pages
ITEM 1.
(a) NAME OF ISSUER: SALLY BEAUTY COMPANY, INC.
(b) ADDRESS OF ISSUER'S PRINCIPAL EXECUTIVE OFFICES:
3001 COLORADO BOULEVARD
DENTON TX 76210
Item 2(a). NAME OF PERSON FILING:
(i) Oscar S. Schafer & Partners I LP, a Delaware limited
partnership ("OSS I"), with respect to shares of Common Stock
(as defined in Item 2(d) below) directly owned by it;
(ii) Oscar S. Schafer & Partners II LP, a Delaware limited
partnership ("OSS II", and together with OSS I, the
"Partnerships"), with respect to shares of Common Stock as
defined in Item 2(d) below) directly owned by it;
(iii) O.S.S. Advisors LLC, a Delaware limited liability
company (the "General Partner"), which serves as the general
partner of each of the Partnerships, with respect to shares of
Common Stock (as defined in Item 2(d) below) directly owned by
each of the Partnerships;
(iv) O.S.S. Overseas Fund Ltd., a Cayman Islands exempted
company ("OSS Overseas"), with respect to shares of Common
Stock directly owned by it;
(v) O.S.S. Capital Management LP, a Delaware limited partnership
(the "Investment Manager"), which serves as investment
manager, and management company, to OSS Overseas and the
Partnership, respectively, and has investment discretion with
respect to shares of Common Stock directly owned by OSS
Overseas and Partnerships;
(vi) Schafer Brothers LLC, a Delaware limited liability company
(the "SB LLC"), which serves as the general partner to the
Investment Manager, with respect to shares of Common Stock
directly owned by OSS Overseas and the Partnerships; and
(vii) Mr. Oscar S. Schafer ("Mr. Schafer"), who serves as the senior
managing member of the General Partner and of the SB LLC, with
respect to shares of Common Stock directly owned by the
Partnerships and OSS Overseas.
CUSIP No. 79546E104 13G Page 10 of 14 Pages
The Partnerships, OSS Overseas, the General Partner, the Investment
Manager, SB LLC and Mr. Schafer are hereinafter sometimes collectively referred
to as the "Reporting Persons." Any disclosures herein with respect to persons
other than the Reporting Persons are made on information and belief after making
inquiry to the appropriate party.
ITEM 2.
(a) NAME OF PERSON FILING
(i) O.S.S. Capital Management LP
(ii) Oscar S. Schafer & Partners I LP
(iii) Oscar S. Schafer & Partners II LP
(iv) O.S.S. Overseas Fund Ltd.
(v) O.S.S. Advisors LLC
(vi) Schafer Brothers LLC
(vii) Oscar S. Schafer
(b) ADDRESS OF PRINCIPAL OFFICE, OR, IF NONE, RESIDENCE
The address of the principal business offices of each of:
(i) Investment Manager
598 Madison Avenue
New York, NY 10022
(ii) OSS I
598 Madison Avenue
New York, NY 10022
(iii) OSS II
598 Madison Avenue
New York, NY 10022
(iv) OSS Overseas
SEI Investments Global (Cayman) Limited
Harbor Place, 5th Floor
South Church Street, P.O. Box 30464 SMB
Grand Cayman, Cayman Islands
British West Indies
(v) General Partner
598 Madison Avenue
New York, NY 10022
(vi) SB LLC
598 Madison Avenue
New York, NY 10022
(vii) Mr. Schafer
598 Madison Avenue
New York, NY 10022
(c) CITIZENSHIP
(i) Investment Manager - Delaware, USA
(ii) OSS I - Delaware, USA
(iii) OSS II - Delaware, USA
(iv) OSS Overseas - Cayman Islands
(v) General Partner - Delaware, USA
(vi) SB LLC - Delaware, USA (vii) Mr. Schafer - New York, USA
CUSIP No. 79546E104 13G Page 11 of 14 Pages
(d) TITLE OF CLASS OF SECURITIES Common Stock
(e) CUSIP NUMBER
79546E104
Item 3. If this statement is filed pursuant to Rules 13d-1(b) or 13d-2(b) or
(c), check whether the person filing is a:
(a) [ ] Broker or dealer registered under Section 15 of the Act,
(b) [ ] Bank as defined in Section 3(a)(6) of the Act,
(c) [ ] Insurance Company as defined in Section 3(a)(19) of the
Act,
(d) [ ] Investment Company registered under Section 8 of the
Investment Company Act of 1940,
(e) [ ] Investment Adviser in accordance with Rule
13d-1 (b)(1)(ii)(E),
(f) [ ] Employee Benefit Plan or Endowment Fund in accordance
with 13d-1 (b)(1)(ii)(F),
(g) [ ] Parent Holding Company or control person in accordance
with Rule 13d-1 (b)(1)(ii)(G),
(h) [ ] Savings Association as defined in Section 3(b) of the
Federal Deposit Insurance Act,
(i) [ ] Church Plan that is excluded from the definition of an
investment company under Section 3(c)(14) of the Investment
Company Act of 1940,
(j) [ ] Group, in accordance with Rule 13d-1(b)(1)(ii)(J).
Not applicable.
CUSIP No. 79546E104 13G Page 12 of 14 Pages
ITEM 4. OWNERSHIP.
Provide the following information regarding the aggregate number and
percentage of the class of securities of the issuer identified in Item 1.
(a) Amount beneficially owned:
The Investment Manager may be deemed to beneficially own
9,229,300 Shares. OSS I may be deemed to beneficially own
364,763 Shares. OSS II may be deemed to beneficially own
3,928,996 Shares. OSS Overseas may be deemed to beneficially
own 4,741,986 Shares. The General Partner may be deemed to
beneficially own 4,293,759 Shares as a result of its voting
and dispositive power over 4,293,759 Shares owned by the
Partnerships. SB LLC may be deemed to beneficially own
9,229,300 as a result of its voting and dispositive power over
9,229,300 Shares owned by the Partnerships and OSS Overseas.
Mr. Schafer may be deemed to beneficially own 9,229,300 by
virtue of his voting and dispositive power over 9,229,300
Shares owned by the Partnerships and OSS Overseas
The Investment Manager, SB LLC and Mr. Schafer have investment
discretion with respect to 193,555 Ordinary Shares which are held
for the benefit of a third party in a separately managed account.
(b) PERCENTAGE BENEFICIALLY OWNED
Based on calculations made in accordance with Rule 13d-3(d), and
there being 180,322,000 outstanding:
(i) Investment Manager may be deemed to beneficially own
approximately 5.1% of the outstanding Shares;
(ii) OSS I may be deemed to beneficially own
approximately 0.2% of the outstanding
Shares;
(iii) OSS II may be deemed to beneficially own
approximately 2.2% of the outstanding
Shares;
(iv) OSS Overseas may be deemed to beneficially
own approximately 2.6% of the outstanding
Shares;
(v) General Partner may be deemed to beneficially
own approximately 2.4% of the outstanding Shares;
(vi) SB LLC may be deemed to beneficially own approximately
5.1% of the outstanding Shares;
(vii) Mr. Schafer may be deemed to beneficially own
approximately 5.1% of the outstanding Shares.
(c) NUMBER OF SHARES AS TO WHICH THE PERSON HAS:
(i) Sole power to vote or to direct the vote -0-.
(ii) Shared power to vote or to direct the vote 9,229,300.
(iii) Sole power to dispose or to direct the disposition of
-0-.
(iv) Shared power to dispose or to direct the disposition of
9,229,300.
ITEM 5. OWNERSHIP OF FIVE PERCENT OR LESS OF A CLASS
If this statement is being filed to report the fact that as of
the date hereof the reporting person has ceased to be the beneficial owner of
more than five percent of the class of securities, check the following [ ].
CUSIP No. 79546E104 13G Page 13 of 14 Pages
ITEM 6. OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF ANOTHER PERSON
The (i) limited partners and the general partner of the
Partnership and (ii) the shareholders and advisor of OSS Overseas have the right
to participate in the receipt of dividends from, or proceeds from the sale of,
the securities held for the Partnerships and OSS Overseas, respectively.
Item 7. IDENTIFICATION AND CLASSIFICATION OF THE SUBSIDIARY WHICH
ACQUIRED THE SECURITY BEING REPORTED ON BY THE PARENT HOLDING
COMPANY
Not applicable.
ITEM 8. IDENTIFICATION AND CLASSIFICATION OF MEMBERS OF THE GROUP
See Item 2.
ITEM 9. NOTICE OF DISSOLUTION OF GROUP
Not applicable.
ITEM 10. CERTIFICATION
By signing below I certify that, to the best of my
knowledge and belief, the securities referred to
above were not acquired and are not held for the
purpose of or with the effect of changing or
influencing the control of the issuer of the
securities and were not acquired and are not held in
connection with or as a participant in any
transaction having that purpose or effect.
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
June 18, 2007
------------------------------
Date
/s/ Oscar S. Schafer
------------------------------
Signature
Oscar S. Schafer, Managing Partner
------------------------------
Name/Title
The original statement shall be signed by each person on whose behalf the
statement is filed or his authorized representative. If the statement is signed
on behalf of a person by his authorized representative other than an executive
officer or general partner of the filing person, evidence of the
representative's authority to sign on behalf of such person shall be filed with
the statement, provided, however, that a power of attorney for this purpose
which is already on file with the Commission may be incorporated by reference.
The name and any title of each person who signs the statement shall be typed or
printed beneath his signature.
CUSIP No. 79546E104 13G Page 14 of 14 Pages
NOTE: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See ss.240.13d-7 for other
parties for whom copies are to be sent.
ATTENTION: INTENTIONAL MISSTATEMENTS OR OMISSIONS OF FACT CONSTITUTE FEDERAL
CRIMINAL VIOLATIONS (SEE 18 U.S.C. 1001)
CUSIP No. 79546E104 13G
EXHIBIT 1
JOINT ACQUISITION STATEMENT
PURSUANT TO RULE 13d-1(k)
The undersigned acknowledge and agree that the foregoing statement
on Schedule 13G, is filed on behalf of each of the undersigned and that all
subsequent amendments to this statement on Schedule 13G, shall be filed on
behalf of each of the undersigned without the necessity of filing additional
joint acquisition statements. The undersigned acknowledge that each shall be
responsible for the timely filing of such amendments, and for the completeness
and accuracy of the information concerning him or it contained therein, but
shall not be responsible for the completeness and accuracy of the information
concerning the others, except to the extent that he or it knows or has reason to
believe that such information is inaccurate.
DATED: June 18, 2007
Oscar S. Schafer
/s/ Oscar S. Schafer
-------------------------------------
individually and as senior managing member
of (a) O.S.S. Advisors LLC,
for itself and as the general partner of
(i) Oscar S. Schafer & Partners I LP;
and
(ii)Oscar S. Schafer & Partners II LP;
and (b) Schafer Brothers LLC,
for itself and as the general
partner of O.S.S. Capital
Management LP and investment manager
of O.S.S. Overseas Fund Ltd.