Olaplex, the brand that disrupted the hair industry creating a new category of bond-building products, has been acquired by Advent International (Advent).
WHO: Olaplex is a revolutionary brand that paved the way for a new category of haircare called “bond-building,” the process of protecting, strengthening, and rebuilding broken bonds in the hair during and after hair services. The brand’s products have an active, patented ingredient that works on a molecular level to protect and repair hair from damage. Founded in 2014, Olaplex quickly became a global sensation as word of its remarkable hair repair capabilities spread and the brand earned the trust and devotion of a loyal community of hair stylists. Today, Olaplex is one of the largest independent haircare brands in the world, selling through both the professional and consumer channels.
Advent International has significant investment experience in the retail, consumer, and leisure industry globally. In the past 29 years, the firm has invested more than $11 billion in over 75 companies across subsectors such as beauty and personal care, differentiated brands, growth-oriented food and beverage, and fast-casual and quick-service restaurants.
WHY: The private equity takeover is expected to help Olaplex grow its product assortment, distribution, and geographic reach.
IN THEIR OWN WORDS: “We’ve had an amazing ride over the last five years, but think we’re just at the beginning of where this brand could be and we were looking for a partner who had experience and demonstrated success to be able to grow our brand in new channels, deeper in our existing channels and help us launch more fully globally,” Tiffany Walden, Chief Operating Officer of Olaplex, said to WWD.
“Damaged hair is a universal problem. Having grown up in the beauty business, I was inspired to disrupt the hair care industry by developing a technology that protects hair from damage,” Dean Christal, Chief Executive Officer of Olaplex, said in a statement. “With Advent’s shared vision and deep experience in supporting high-growth businesses, we look forward to enhancing our company’s strong customer loyalty globally and across channels and realizing our ambitious growth plan.”
Tricia Glynn, Managing Director at Advent, said in a statement, “Olaplex has differentiated itself by offering superior products backed by patents. It is rare that we see brands of this size growing so rapidly and with such a passionate consumer base. We believe the company has a significant runway for growth by increasing its brand awareness globally, broadening its product line of innovative ‘hero’ products, and further developing its ability to speak and sell to consumers directly.”
“I’m proud of the success Olaplex has achieved to date,” Walden said. “We are excited to work with Advent to build on our foundation and continue to provide our customers with the highest quality products.”
- Advent International acquired Olaplex.
- Terms of the deal were not disclosed, but according to WWD, industry sources said Olaplex has more than $100 million in sales, and that the company is valued at around $1 billion.
- In August Olaplex won a second judgment against beauty giant L’Oréal for two patent claims, plus trade-secret theft and breach of confidentiality.
- Founders Dean and Darcy Christal will not be involved with the company once the deal closes. Tiffany Walden, Olaplex’s Chief Operating Officer, said the rest of the team will remain on board.
- Advent International backed European beauty retailer Douglas until 2015.
- Olaplex tapped Financo Inc. in April to consider a deal and they served as exclusive financial advisor to Olaplex on the transaction.
- Goldman Sachs & Co. LLC served as exclusive financial advisor to Advent International.
Photo: via Olaplex