Olaplex to be acquired by German company Henkel in $1.4 billion deal

German consumer brand Henkel announced Thursday that it has agreed to acquire the entire prestigious hair care brand. Olaplex For $1.4 billion.

The deal, at an offer price of $2.06 per share, was unanimously approved by Olaplex’s board of directors and represents a “major milestone” in Henkel’s business strategy, the company said.

“The planned acquisition of OLAPLEX is fully compatible with Henkel’s strategy to expand its portfolio through interesting, value-added merger and acquisition activities,” Henkel CEO Carsten Knobel said in a statement. he said. “This transaction allows us to expand our presence in premium hair care. The brand creates compelling opportunities for future growth and innovation.”

Henkel has brands such as Got2b and Purex.

Olaplex said the deal represents a more than 50% premium to Wednesday’s closing stock price and will allow the company to explore new opportunities for innovation and growth and expand its international reach.

“This move is a testament to the momentum we have achieved in our transformation and the significant opportunities ahead for OLAPLEX to continue shaping the future of hair health and drive long-term growth,” Olaplex CEO Amanda Baldwin said in a statement. he said.

The company’s shares, which closed Wednesday around $1.30 per share, rose 50% in premarket trading following the announcement.

For the past few years, Olaplex, as a publicly traded company, has been dealing with the fallout from a lawsuit alleging hair loss and increased competition in the prestige hair care space.

Before the deal, Olaplex’s shares had lost nearly 95% of their value since its initial public offering in 2021, when it opened at $25 per share during the IPO boom. It had been trying to turn its business around by launching a new product last month and trying to rewrite its reputation with consumers.

Analysts previously told CNBC they were excited about the possibility that the company could go private.