Olaplex stock surge 50% after Henkel’s $1.5B acquisition

Shares of Olaplex Holdings surged sharply on Thursday after German consumer goods giant Henkel agreed to acquire the prestige hair care brand in a deal valued at approximately $1.4 billion, marking a significant turnaround moment for the struggling company.

The stock jumped more than 50%, putting it on track for its largest single-day percentage gain on record. 

Under the terms of the agreement, Henkel will pay around $2.06 per share for Olaplex, representing a premium of more than 50% compared with the stock’s closing price on Wednesday.

Deal structure and strategic rationale

The transaction has been unanimously approved by Olaplex’s board of directors and its controlling shareholder, Advent International, which is expected to exit its investment upon completion of the deal. The acquisition is anticipated to close in the second half of 2026.

Henkel framed the deal as a strategic move to strengthen its presence in the premium hair care segment.

“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.”

The acquisition also continues Henkel’s recent push into expansion through acquisitions. 

The company earlier announced plans to acquire North American hair care brand Not Your Mother’s and agreed last month to purchase specialty coatings firm Stahl for around $2.5 billion.

Olaplex turnaround and valuation gap

While the offer represents a substantial premium to Olaplex’s recent trading levels, it remains well below the company’s valuation at the time of its initial public offering.

Olaplex went public in 2021 at around $21 per share during a strong IPO market and traded as high as $30.41 in December of that year, with a record closing high of $29.41 in January 2022. 

Before the deal, however, the stock had lost nearly 95% of its value since its debut and had effectively traded as a penny stock since early 2023.

The company has faced a series of challenges in recent years, including increased competition in the prestige hair care segment and the fallout from a lawsuit alleging hair loss linked to its products.

Despite these setbacks, Olaplex has been working to revive growth through product launches and efforts to rebuild its brand image.

“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.

Market reaction and outlook

Investors responded positively to the acquisition, viewing it as an opportunity for Olaplex to reposition itself away from the pressures of public markets.

The deal highlights growing consolidation in the beauty and personal care industry, particularly in the premium segment, where established players are seeking to expand through acquisitions.

For Henkel, the transaction adds a well-known brand to its portfolio, which already includes products such as Got2b and Purex, and strengthens its foothold in higher-margin categories.

The acquisition also reflects broader investor sentiment that Olaplex may benefit from going private, allowing it to focus on long-term growth initiatives without the scrutiny of quarterly earnings expectations.