Rumors are swirling that Henkel may be preparing to acquire Olaplex, a prestige hair care brand renowned for its bond-building technology. If this deal materializes, it could reshape the competitive landscape of the global professional hair care market and mark it as Henkel’s most significant move since its acquisition of Shiseido Professional in 2022/23.
Henkel’s Race for #2
Henkel has long been locked in a battle with Wella for the #2 position in global professional hair care. Currently, the two companies are essentially tied when factoring in Kline + Company’s margin of error from its Professional Hair Care Global Series —the industry’s most in-depth and authoritative analysis of 30+ markets, representing over 85% of the global professional hair care landscape. However, acquiring Olaplex would decisively tip the scales: Henkel would claim a solid #2 spot with a 12% market share, ahead of Wella’s 10%. Although L’Oréal would remain the undisputed leader, Henkel would strengthen its foothold in a fiercely competitive market.
Why Olaplex Fits Henkel’s Strategy
Henkel’s portfolio is heavily weighted toward hair styling, where it currently ranks #1 globally and hair coloring, its largest category, where it sits at #3, according to Kline’s Professional Hair Care Global Series study. The addition of Olaplex would give Henkel a much stronger position in the care segment, encompassing shampoos, conditioners, and treatments, a category where Olaplex has built its reputation.
This potential acquisition also plays to Henkel’s strengths.
Although Henkel’s previous major acquisition Shiseido Professional has struggled in recent years, the company has a strong track record with American-origin brands. For example, Kenra achieved a five-year historical CAGR of 13%, while Joico witnessed a solid 5% CAGR, according to Kline’s data. Adding Olaplex would expand Henkel’s successful North American portfolio of 12 professional hair brands, introducing a premium, care-focused brand to the lineup.
Olaplex: From Peak to Pivot
Olaplex, acquired by Advent International in 2019 and taken public in 2021, soared to prominence with its science-backed formulations and cult-favorite products. For instance, its Bond Maintenance Shampoo No 4 has been the best-selling hair care product in U.S. salons for two consecutive years 2021 and 2022, according to our . However, the brand has faced headwinds since its 2022 peak, losing its #1 positions in several categories and seeing its valuation decline. A partnership with Henkel could provide the global reach and operational stability that Olaplex currently needs to regain momentum.
The Deal Dynamics: What Kline Experts Think
Should Henkel buy Olaplex? Yes, under the right conditions:
- A price that reflects Olaplex’s current reality
- A structure that preserves and revitalizes Olaplex’s brand equity and innovation focus
Should Advent/Olaplex sell? Yes, if they can secure a valuation that honors Olaplex’s prestige and heritage. A sale would allow Advent to exit an investment that has not lived up to its IPO valuation.
What’s at Stake
For Henkel, this acquisition would fortify its professional hair care portfolio with a prestige brand and strengthen its position in the care category. For Olaplex, it offers scale, stability, and access to Henkel’s global infrastructure. But the risks are real: overpaying or mismanaging integration could turn a strategic win into a costly misstep.
Henkel’s potential acquisition of Olaplex highlights the increasing importance of scale, innovation, and strategic positioning in professional hair care. Tracking the professional hair care industry for over 30 years, Kline provides unparalleled visibility into brand performance, category dynamics, and channel shifts, insights that are critical when assessing strategic moves such as acquisitions and divestments.
Beyond market intelligence, Kline supports beauty companies, investors, and financial sponsors through M&A advisory, from target screening and commercial due diligence to growth strategy development post-acquisition. Connect with an industry expert to learn how we can help evaluate and unlock value in the ever-changing beauty industry.
