Bloomberg reported that Olaplex stock rose more than 22% when German CPG conglomerate Henkel AG submitted a takeover offer for Olaplex. The US haircare brand has struggled since its initial $1.55 billion public offering in September 2021, losing 90% of its value. A potential transaction could come together within weeks, said people close to the negotiations. Nothing is certain; both sides have declined public comment, so the talks could end without a deal.
Advent acquired Olaplex in November 2019 in a deal that valued the company at around $1.4 billion, and it remains the haircare brand's largest shareholder with close to a 75% stake, making its consent pivotal to any change in control. The private equity firm has been reassessing exit options since the brand's struggles in the public market.
Olaplex's fall from grace has been dramatic, fueled by overdistribution that diluted its professional positioning, increased competition in the bond-building category it pioneered, pandemic-era demand normalization, and the reputational damage of a class-action lawsuit.
JuE Wong joined the brand in 2020, leading it through the IPO, the pandemic, and the viral ingredient moment centered on lilial, the fragrance ingredient included in some Olaplex products that became the focus of a hair-loss lawsuit. In 2024, the brand changed leadership with Amanda Baldwin, the former Chief Executive Officer of Supergoop!, taking the reins and looking to bring the business into a new era of growth.
The company went public at $21 per share, quickly reaching a peak of $29.41 in January 2022, making it one of the most valuable global haircare brands, valued at approximately $16 billion. By November 2025, shares had fallen to an all-time low of $1.01 as revenue cratered from $704 million in FY2022 to $423 million in FY2024.
For the Düsseldorf-based conglomerate, an Olaplex acquisition is a calculated move to consolidate its position in the haircare sector. The company already owns the Schwarzkopf, Syoss, Joico, Taft, got2b, and Kenra brands, anchored by color and styling, largely in mass and masstige price tiers across professional and consumer channels.
Olaplex supports Henkel’s “value to premium” strategy in hair with science-backed treatment‑led care, strengthening its position in high‑margin prestige segments and deepening its presence in North America and the salon channel.
Henkel reported strong momentum in its Hair business segment, achieving 4.4% organic sales growth in Q3 2025, outpacing its broader Consumer Brands division.
The potential deal is representative of a recurring challenge for PE-backed consumer brands that IPO at peak multiples only to see valuations slip as growth normalizes. At the current market valuation, a modest takeover premium would still represent a loss for Advent but would provide liquidity and certainty after years of public market volatility.
Olaplex management has not commented on the reports, but its Q4 2025 earnings call is expected in late February.