Henkel to buy US premium haircare brand Olaplex in $1.4bn deal

(Sharecast News) - Germany's Henkel said on Thursday that it has agreed to buy Olaplex in a $1.4bn deal, sending shares in the US premium haircare brand surging. Under the terms of the deal, Henkel will pay $2.06 per share in cash. This is a premium of about 55% to the closing share price on Wednesday.

Henkel said the acquisition marks another important milestone in its "purposeful growth agenda" and further expands hair care as a core category within its consumer brands business.

Once the deal completes, Olaplex will continue to operate under the same name and brand. It will no longer be listed on the Nasdaq, and private equity firm Advent will fully exit its investment.

Henkel chief executive Carsten Knobel said: "The planned acquisition of Olaplex is fully in line with Henkel's strategy to expand its portfolio through compelling, value-adding M&A activities. This transaction allows us to expand our presence in premium hair care. The brand creates compelling opportunities for future growth and innovation."

Wolfgang Konig, executive vice president of Henkel's consumer brands business, said: "Olaplex is a perfect strategic fit for our premium hair care business.

"Its strong scientific foundation, guided by professionals, combined with a robust presence across premium channels makes it highly complementary to our existing portfolio and we see meaningful opportunities to accelerate innovation."

At 1050 GMT, Olaplex shares were up 50.4% at $2.00 in pre-market trade.