Henkel has officially agreed to acquire Olaplex, a prestige hair care brand renowned for its bond-building technology. This deal marks Henkel’s most significant move since its acquisition of Shiseido Professional in 2022/23 and is set to reshape the competitive landscape of the global professional hair care market.
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.
With the acquisition of Olaplex, Henkel is expected to 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 strenghtens Henkel’s position in the care segment, encompassing shampoos, conditioners, and treatments, a category where Olaplex has built its reputation.
This 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 further expands 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 Kline PRO, a point-of-sales database for tracking salon services and retail product sales in the United States and Canada. However, the brand has faced headwinds since its 2022 peak, losing its #1 positions in several categories and seeing its valuation decline. The acquisition by Henkel provides the global reach and operational stability that Olaplex needs to regain momentum.
The Deal Dynamics: What Kline Experts Think
With the transaction now confirmed, the focus shifts from “whether” to “how” value will be created. For Henkel, success depend on:
- Maintaining discipline of valuation and delivering on expected synergies r
- Preserving and revitalizing Olaplex’s brand equity and innovation focus
For Advent/Olaplex the deal represents an opportunity to exist while securing strategic opportunity for the brand under a global player.
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 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.
