One of hair care’s buzziest brands is exploring sale options, industry sources tell WWD.
Rumors are swirling that K18, the biotechnology-fueled hair care brand that sits at the nexus of innovation and social media know-how, is considering a sale. It was founded in late 2020 by Suveen Sahib and Britta Cox and currently has funding from Springboard Growth Capital, VMG Partners and True Beauty Ventures, among others.
“We’ve had strategic interest from the first few months of the [brand’s] launch, but there is no M&A conversation at this time,” Suveen Sahib, K18’s cofounder and chief executive officer, told WWD. “We’re still in early stage in our cycle, and we have quite a bit of runway.”
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VMG Partners could not be reached for comment by press time. True Beauty Ventures declined to comment.
Industry sources said K18 is working with Financo Raymond James to oversee the sale. The bank declined to comment.
WWD understands that the process is pared back, with limited outreach to beauty’s largest players.
The brand’s net sales are expected to surpass $100 million this year.
K18, which is sold at Sephora, features a proprietary molecule called K18Peptide, meant to repair damaged hair. According to its website, a full treatment “restores hair up to 91 percent original strength and 94 percent original elasticity.”
It debuted with its molecular repair hair mask, $75 for 50 mL, which launched with a multibillion-view TikTok campaign. The assortment has since expanded to include shampoos and a hair oil. Prices range from $38 for a shampoo to $75.
Prestige hair care is one of beauty’s fastest-growing categories. According to Circana, first-quarter hair care sales grew 7 percent across the mass market and prestige, with the latter outpacing the former. Hair has gained traction in recent years as a preeminent acquisition target.
The process also comes at a time when beauty deals have abated due to larger economic pressures, especially in respect to the deal flurry in 2021 that included Ouai, Sol de Janeiro, Beekman 1802 and others. That didn’t stop L’Oréal from inking a deal in April to buy Aesop at a $2.5 billion valuation, or P&G Beauty from buying Mielle Organics at an undisclosed valuation in January.