Ownership Submission
FORM 3
 UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
  CDRS Acquisition LLC
 2. Date of Event Requiring Statement (Month/Day/Year)
11/16/2006		 3. Issuer Name and Ticker or Trading Symbol
New Sally Holdings, Inc. [SBH]
(Last)
(First)
(Middle)
1403 FOULK ROAD, SUITE 106		 4. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
_____ Director __X__ 10% Owner
_____ Officer (give title below) _____ Other (specify below)
5. If Amendment, Date Original Filed(Month/Day/Year)
(Street)

WILMINGTON, DE 19803		 6. Individual or Joint/Group Filing(Check Applicable Line)
___ Form filed by One Reporting Person
_X_ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Beneficially Owned
1.Title of Security
(Instr. 4)		 2. Amount of Securities Beneficially Owned
(Instr. 4)		 3. Ownership Form: Direct (D) or Indirect (I)
(Instr. 5)		 4. Nature of Indirect Beneficial Ownership
(Instr. 5)

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly. SEC 1473 (7-02)
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Table II - Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 4)		 2. Date Exercisable and Expiration Date
(Month/Day/Year)		 3. Title and Amount of Securities Underlying Derivative Security
(Instr. 4)		 4. Conversion or Exercise Price of Derivative Security 5. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 5)		 6. Nature of Indirect Beneficial Ownership
(Instr. 5)
Date Exercisable Expiration Date Title Amount or Number of Shares
Class A Common Stock   (1)   (1) Common Stock 85,795,405 $ (1) D (2)  

Reporting Owners

Reporting Owner Name / Address Relationships
Director 10% Owner Officer Other
CDRS Acquisition LLC
1403 FOULK ROAD, SUITE 106
WILMINGTON, DE 19803		     X    
Clayton Dubilier & Rice Fund VII L P
1403 FOULK ROAD, SUITE 106
WILMINGTON, DE 19803		     X    
CD&R Associates VII, Ltd.
1403 FOULK ROAD, SUITE 106
WILMINGTON, DE 19803		     X    
CD&R Associates VII, L.P.
1403 FOULK ROAD, SUITE 106
WILMINGTON, DE 19803		     X    
CD&R Investment Associates VII, Ltd.
P.O. BOX 309GT, UGLAND HOUSE
GEORGE TOWN, GRAND CAYMAN, E9 BWI		     X    

Signatures

CDRS Acquisition LLC By: Theresa A. Gore, EVP and Treasurer 11/20/2006
**Signature of Reporting Person Date
Clayton, Dubilier & Rice Fund VII, L.P. By: CD&R Associates VII, Ltd., its general partner By: Theresa A. Gore, VP, Treas. and Asst. Sec. 11/20/2006
**Signature of Reporting Person Date
CD&R Associates VII, Ltd. By: Theresa A. Gore, VP, Treas. and Asst. Sec. 11/20/2006
**Signature of Reporting Person Date
CD&R Associates VII, L.P. By: CD&R Investments Associates VII, Ltd., its general partner By: Theresa A. Gore, VP, Treas. and Asst. Sec. 11/20/2006
**Signature of Reporting Person Date
CD&R Investment Associates VII, Ltd. By: VP, Treas. and Asst. Sec. 11/20/2006
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 5(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) Pursuant to the Issuer's Amended and Restated Certificate of Incorporation, dated November 16, 2006, outstanding shares of Class A Common Stock automatically convert, as of November 17, 2006, into shares of the Issuer's Common Stock on a one-for-one basis.
(2) The Reporting Person is a wholly-owned subsidiary of Clayton, Dubilier & Rice Fund VII, L.P. Clayton, Dubilier & Rice Fund is a partnership of which CD&R Associates VII, Ltd. is the general partner, which is a wholly-owned subsidiary of CD&R Associates VII, L.P., of which CD&R Investment Associates VII, Ltd. is the general partner. Each of the reporting owners disclaims beneficial ownership of these securities.

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