Olaplex draws takeover interest from Germany’s Henkel, Bloomberg News reports

Jan 7 (Reuters) – Olaplex Holdings has drawn a takeover offer from Germany’s consumer goods maker Henkel, Bloomberg News reported on Wednesday, citing people familiar with the matter.

Shares of the U.S. hair care products maker jumped 20% in afternoon trading. The stock has fallen about 94% since Olaplex’s market debut in September 2021.

A deal could come together within weeks, Bloomberg reported, adding a final decision has not been made and talks could still collapse.

Olaplex and Henkel did not immediately respond to a Reuters request for comment.

Founded in 2014, Olaplex sells shampoos, conditioners, treatments and oils aimed at repairing damaged hair. Bundles can cost as much as $172, its website shows.

Olaplex had a market value of about $901 million, according to LSEG data.

The company has tried to revive sales after demand weakened in recent years amid cautious consumer spending and intense competition in hair care. The slowdown pushed Olaplex to lean more heavily on marketing and promotions.

Private equity firm Advent is Olaplex’s largest shareholder, with a nearly 75% stake, according to data compiled by LSEG. 

Advent declined to comment on a Reuters query.

(Reporting by Savyata Mishra in Bengaluru; Editing by Tasim Zahid)