German consumer goods group Henkel (TG:HEN) has agreed to purchase prestige haircare brand Olaplex (NASDAQ:OLPX) in a transaction valued at approximately $1.4 billion, the company announced Thursday.
The acquisition will be completed through an offer of $2.06 per share for Olaplex stock. Henkel said the agreement received unanimous approval from Olaplex’s board and represents an “important milestone” in advancing the company’s long-term strategy.
“The planned acquisition of OLAPLEX is fully in line with Henkel’s strategy to expand its portfolio through compelling, value-adding M&A activities,” Henkel CEO Carsten Knobel said in a statement. “This transaction allows us to expand our presence in premium hair care. The brand creates compelling opportunities for future growth and innovation.”
Henkel’s portfolio already includes consumer brands such as Got2b and Purex.
Olaplex said the transaction offers shareholders a premium of more than 50% compared with the company’s closing share price on Wednesday and would support further innovation while strengthening its global reach.
“This step is 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 and pursue long-term growth,” Olaplex CEO Amanda Baldwin said in a statement.
Following the announcement, Olaplex shares surged roughly 50% in morning trading, after closing the previous session at about $1.30 per share.
The company has faced challenges since going public, including reputational issues tied to a lawsuit alleging hair loss and increasing competition within the premium haircare segment.
Before the acquisition announcement, Olaplex stock had declined nearly 95% from its 2021 initial public offering, when shares debuted at $25 during a surge in IPO activity. In recent months the company has been working to stabilize its business through new product launches and efforts to rebuild consumer trust.
Some analysts had previously indicated that taking the company private could offer a pathway for Olaplex to restructure and pursue longer-term growth strategies.