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 all of prestige haircare brand Olaplex for $1.4 billion.

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

“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.”

Henkel owns brands like Got2b and Purex.

Olaplex said the deal represented a premium of more than 50% over its closing stock price on Wednesday and would allow the company to explore new opportunities for innovation and growth, as well as expand its international reach.

“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.

Shares of the company, which closed on Wednesday around $1.30 per share, shot up 50% in premarket trading following the announcement.

Olaplex had been struggling as a public company over the past few years, dealing with the fallout of a lawsuit alleging hair loss and increased competition in the prestige hair care space.

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

Analysts had previously told CNBC that they were excited at the prospect that the company may go private.