Henkel Eyes Olaplex Takeover Amid Stock Collapse
Henkel AG, a German multinational chemical and consumer goods company, has reportedly made a takeover offer for Olaplex Holdings Inc., the hair care product manufacturer. This move comes as Olaplex has experienced a significant decline in its stock value, losing over 90% of its worth since its initial public offering (IPO) in 2021.
Sources familiar with the matter indicate that discussions between Olaplex and Henkel are ongoing, with a potential deal possibly finalized within the coming weeks. However, these discussions are confidential, and no final decision has been reached, leaving the possibility of the talks concluding without an agreement. Representatives from both Advent, Olaplex’s majority shareholder, and Henkel have declined to comment on the situation, while Olaplex has not yet responded to requests for confirmation.
The news of the potential acquisition triggered a substantial increase in Olaplex’s stock price, jumping more than 36% following the reports. As of Wednesday afternoon trading in New York, the stock was up 25% to $1.69, resulting in a market capitalization of approximately $1.1 billion. This represents a dramatic fall from its $16 billion valuation at the time of its IPO.
Olaplex, known for its bond-building hair treatments, was part of a wave of companies, including On Holding AG and Dutch Bros Inc., that went public during a period of high market valuations. However, many of these companies have since faced challenges and seen their stock prices decline.
Henkel, based in Düsseldorf, Germany, is a well-established manufacturer of chemicals for industrial and consumer applications. The company also owns a portfolio of popular hair product brands, most notably Schwarzkopf. Olaplex’s products are distributed through both direct-to-consumer channels and professional hair salons.
Private equity firm Advent International currently holds a controlling stake in Olaplex, owning nearly 75% of the company’s shares. Advent initially acquired Olaplex in 2019, but the terms of that transaction were not publicly disclosed.
