Color Wow, the high-growth haircare brand founded by industry veteran Gail Federici, is exploring a potential sale that could value the company at approximately $1bn, according to a Reuters report citing sources familiar with the matter.
The process, led by boutique investment bank Houlihan Lokey, has drawn interest from both consumer product companies and private equity firms.
With an estimated $300m in annual revenue, Color Wow represents an appealing opportunity for private equity investors looking to tap into the premium beauty and personal care market. The sector has seen heightened deal activity, as private equity firms increasingly target fast-growing, founder-led brands with strong consumer loyalty and global expansion potential.
Federici, who previously co-founded John Frieda Professional Hair Care, sold that business to Japan’s Kao Corporation for $450m in 2002.
Color Wow, which launched in 2013, has built a strong following with best-selling products such as Root Cover Up and Dream Coat. Its success in the colour-treated hair segment, a key growth area within the broader beauty market, makes it a prime acquisition target for private equity firms looking to scale the brand further through international expansion and digital marketing strategies.
