Olaplex Shares Rally On Potential Takeover Offer From Germany’s Henkel

The deal could come together within weeks or the talks could not materialise in a deal at all, Bloomberg reported.

• While Olaplex makes solely hair care products, Henkel’s portfolio includes hair care products, laundry detergents, fabric softeners as well as adhesives, sealants, and functional coatings.
• Olaplex has lost nearly 93% of its value since it went public in 2021.

Shares of Olaplex Holdings Inc (OLPX) rallied 20% on Wednesday following a report that Germany’s Henkel AG has submitted a takeover offer for the shampoo maker.

Bloomberg reported on Wednesday, citing people familiar with the matter, that Olaplex and Henkel are in talks about a potential deal. The deal could come together within weeks or the talks could not materialise in a deal at all, the report said.

Bloomberg couldn’t determine the financial aspects of the offer.

Olaplex Major Shareholder, Business

Olaplex has lost nearly 93% of its value since it went public. Bloomberg data pins Olaplex’s biggest shareholder Advent’s ownership at about 75%. The private equity firm acquired Olaplex in 2019 for an undisclosed amount and the company subsequently went public in 2021.

While Olaplex makes solely hair care products, Henkel’s portfolio includes hair care products, laundry detergents, fabric softeners as well as adhesives, sealants, and functional coatings.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around OLPX rose from ‘neutral’ to ‘bullish’ territory over the past 24 hours, while message volume stayed at ‘high’ levels.

A Stocktwits user opined that a takeover offer will likely be based on the company’s IPO valuation of $16 billion and not its current valuation. “This could go bananas if we even see half that on the table,” they wrote.

Another sounded disappointed that the stock pared back some of its gains.

OLPX stock has gained 1% over the past 12 months. 

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