Houlihan Lokey Advises Color Wow

Houlihan Lokey is pleased to announce that Color Wow, one of the world’s fastest-growing and most innovative professional haircare brands, has agreed to be acquired by L’Oréal, the global leader in beauty and cosmetics. The deal was signed on 28 June, and the financial terms are undisclosed. The transaction remains subject to regulatory approvals, and closing is expected later in 2025.

Founded in 2013 by Gail Federici, Color Wow, based in the U.S. and the U.K., offers a unique range of products that has gained a loyal and devoted following among stylists, media, and consumers alike. Having won more than 130 beauty awards, Color Wow provides a wide range of innovative solutions to solve the toughest hair problems, including frizz-control, thickening, and volumising. The brand’s hero products include “XL Bombshell Volumizer” and “Dream Coat”.

Color Wow is a renowned prestige brand in the U.S. haircare market and is experiencing rapid growth, thanks in part to advocacy and its highly engaged online community. Still true to its professional origins, the brand is now omnichannel and is already distributed in salons, selective distribution, and e-commerce platforms.

For 115 years, L’Oréal, the world’s leading beauty player with a broad portfolio of 37 international brands and ambitious sustainability, has aimed to offer each and every person around the world the best in terms of quality, efficacy, safety, sincerity, and responsibility. With more than 90,000 committed employees, a balanced geographical footprint, and sales across all distribution networks, the group generated sales amounting to €43.5 billion in FY24A.

This acquisition further strengthens L’Oréal’s professional products portfolio, which has a proven track record of success and strong potential for global growth.

Houlihan Lokey acted as the exclusive financial advisor to Color Wow. This deal represents another successful transaction for Houlihan Lokey in the beauty and personal care industry, after recently advising on the completion of the sale of DECIEM to Estée Lauder. With more than 270 consumer transactions announced since January 2021, Houlihan Lokey reinforces its global leadership in the consumer space.

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