Henkel AG Proposes Acquisition of Faltering Olaplex
In a significant development within the beauty industry, German consumer goods manufacturer Henkel AG has put forth a takeover bid for the haircare brand Olaplex Holdings Inc., causing a surge in the company’s stock by over 36% post-announcement.
The proposed acquisition surfaces in the wake of Olaplex losing more than 90% of its value since its initial public offering in 2021, a time when the company boasted a valuation of $16 billion. Presently, negotiations between Olaplex and the Düsseldorf-based Henkel may culminate in a deal within the coming weeks. However, a final decision is yet to be reached, and the talks could potentially fall through.
Private equity firm Advent International continues to be the largest shareholder of Olaplex, holding approximately 75% ownership. Henkel, a manufacturer of chemicals for industrial and commercial goods and the owner of hair-product brands such as Schwarzkopf, views this acquisition as a chance to broaden its premium haircare portfolio. The deal could offer the beleaguered Olaplex brand the support of a well-established global consumer goods company, aiding in the restoration of consumer confidence.
Source: Bloomberg