Henkel has made a takeover approach for Olaplex, opening the door to a potential exit for private equity firm Advent from one of the most prominent pandemic-era beauty listings, Bloomberg reports.

The German consumer goods group is in discussions with Olaplex about a possible transaction that could be agreed within weeks, according to people familiar with the matter. The talks remain preliminary and could still collapse.

Olaplex, whose products are sold both to consumers and professional hair salons, has lost more than 90% of its market value since going public in 2021. The company was valued at about $16bn at IPO. Following news of the approach, its shares jumped, giving it a market capitalisation of roughly $1.1bn.

Advent acquired Olaplex in 2019 and remains its largest shareholder, with close to 75% ownership, according to Bloomberg data. Representatives for Advent and Henkel declined to comment, while Olaplex did not immediately respond to requests for comment.

The potential deal highlights how private equity sponsors are reassessing exit options for consumer brands that listed at peak valuations and have since struggled in public markets.

If you think we missed any important news, please do not hesitate to contact us at [email protected].

Can`t stop reading? Read more.