Henkel to Acquire Olaplex for $1.4 Billion in Cash
55% premium to recent trading price marks dramatic end to Olaplex's turbulent public market journey
German consumer goods giant Henkel AG has agreed to acquire Olaplex Holdings for $1.4 billion in cash, offering shareholders $2.06 per share—a 55% premium to the stock's closing price on Wednesday and bringing an abrupt end to the struggling hair care company's brief public market tenure.
The deal represents a steep premium to Olaplex's March 25 closing price of $1.33 and approximately 45% above its volume-weighted average price over the preceding 30 trading days. Shares of the company, which had collapsed more than 90% since its September 2021 initial public offering, rallied following news of the pending transaction.
Olaplex's board unanimously approved the all-cash acquisition, which is expected to close in the second half of 2026 subject to regulatory approvals and customary closing conditions. Advent International, the private equity firm that owned roughly 75% of Olaplex's outstanding shares, has already approved the transaction and will fully exit its investment upon completion.
"This acquisition marks an exciting next chapter for Olaplex," said Amanda Baldwin, the company's chief executive officer. "From our professional roots to becoming a trusted, science-led brand, we've built something truly special. Under Henkel's ownership, we look forward to accelerating product innovation, expanding our reach, and continuing to deliver results for our Pro partners and customers globally."
Henkel's move comes just weeks after the company acquired Not Your Mother's, another hair care brand, signaling a strategic push to bolster its position in the premium and professional hair care market. The German conglomerate, whose Beauty Care division generated €3.8 billion in revenue last year, aims to combine Olaplex's proprietary bond-building technology with its expansive global distribution network.
For Henkel, the transaction provides immediate access to North American consumers and professional salons where Olaplex has established a formidable presence. Olaplex's science-led approach and direct-to-consumer capabilities are expected to complement Henkel's existing portfolio, which includes professional brands such as Schwarzkopf Professional and consumer brands like Syoss.
The deal also concludes a difficult public market chapter for Olaplex, which went public at $21 per share in September 2021 with a valuation exceeding $15 billion. The company's shares plummeted amid concerns about overdistribution, intensifying competition, and a class-action lawsuit related to product safety claims.
Prior to the acquisition announcement, analysts had largely maintained a neutral stance on Olaplex shares. The stock carried an average analyst target price of $1.84, with two buy recommendations, seven hold ratings, and one strong sell rating, according to market data. The company reported $423 million in trailing twelve-month revenue but operated at a loss with negative profit margins.
John P. "JP" Bilbrey, executive chair of Olaplex's board of directors, attributed the company's growth to its "science-led approach, brand strength, and team dedication." He praised the operational transformation the company underwent and expressed confidence that Henkel's ownership would unlock future opportunities.
Upon completion of the transaction, Olaplex will delist from the Nasdaq stock exchange. The brand will continue to operate under its existing name within Henkel's Beauty Care division, with management emphasizing continuity for professional partners and retail customers.
Henkel's expansion in the hair care market comes as competition intensifies across the prestige beauty sector. Major consumer products companies have been aggressively acquiring brands with strong scientific credentials and loyal customer bases, seeking to capture growth in the premium hair care segment that has proven resilient even during economic downturns.