Quick Facts
- Henkel agreed to acquire Olaplex for $1.4 billion, paying $2.06 per share in cash
- The deal represents a 55% premium over Olaplex’s closing price but the stock is down 95% since its 2021 IPO
- Transaction expected to close in second half of 2026, adding to Henkel’s premium hair care brands
German consumer goods company Henkel AG & Co. KGaA will acquire struggling hair care brand Olaplex Holdings Inc. for $1.4 billion. The company announced March 26 it will pay $2.06 per share in cash for the brand known for hair repair treatments.
The acquisition price represents a 55% premium over Olaplex’s March 25 closing price of $1.33. Olaplex shares surged more than 50% following the announcement. Trading volume reached 104.6 million shares, about 2,904% above its three-month average.
Despite the premium, Olaplex stock remains far below its 2021 IPO levels. The shares have lost nearly 95% of their value since opening at $25 per share when the company went public.
Olaplex reported 2025 net sales of $423 million, flat year-over-year. Fourth quarter sales grew 4.3% compared to the prior year. The acquisition values Olaplex at 3.3 times its 2025 sales and 13.7 times EBITDA.
“The planned acquisition of Olaplex is fully in line with Henkel’s strategy to expand its portfolio through compelling, value-adding M&A activities,” said Henkel CEO Carsten Knobel. “This transaction allows us to expand our presence in premium hair care.”
The deal fits into Henkel’s “Purposeful Growth” strategy under Knobel’s leadership. The company recently acquired Chinese business Vidal Sassoon and mass-market brand Not Your Mother’s. Henkel owns hair care brands including Schwarzkopf, Got2B, and DevaCurl.
Olaplex CEO Amanda Baldwin called the acquisition “a testament to the momentum we’ve achieved in our transformation and the significant opportunities ahead for Olaplex to continue shaping the future of hair health.”
The transaction provides Henkel defensive positioning against Unilever, which acquired Olaplex rival K18 in early 2024. Industry analysts note the deal reflects broader consolidation in premium beauty as large companies acquire innovative startups for scale.
Olaplex has struggled as a public company, facing lawsuits alleging hair loss and increased competition. The company called 2023 a “reset year” after falling sales and profits led to multiple C-suite changes including CEO, CFO and chief marketing roles.
The deal received unanimous approval from Olaplex’s board and majority shareholder Advent International. Olaplex will operate as a standalone brand within Henkel’s portfolio and delist from Nasdaq upon closing.
Read more: Olaplex to be acquired by Germany’s Henkel for $1.4B
