NEW YORK, April 1 (Reuters) - Gail Federici, the owner

of Color Wow, is looking to find a buyer for the popular

haircare brand that she founded over a decade ago, in a deal

that could value the company at about $1 billion, according to

people familiar with the matter.

Federici, a serial entrepreneur and a 35-year veteran of the

haircare industry, tapped boutique investment bank Houlihan

Lokey ( HLI ) to evaluate takeover interest, the sources said,

requesting anonymity as the deliberations are confidential.

The talks are at an advanced stage, the sources added.

Potential acquirers include consumer products makers and private

equity firms, the sources said.

Federici and Color Wow did not respond to requests for

comment. Houlihan Lokey ( HLI ) declined to comment.

Federici is a veteran in the haircare industry, having

previously co-founded John Frieda Professional Hair Care with

John Frieda. The duo sold the company in 2002 to Japan's Kao

Corporation for $450 million.

Color Wow, launched by Federici in 2013, is known for its

products for colored hair like Root Cover Up and Dream Coat. The

brand generates around $300 million of annual revenue, one of

the sources said.

Federici's twin daughters, Alex and Brit Smith, also have

roles at the company.