Aug 4 (Reuters) – Procter & Gamble will acquire supplements maker Thorne for $3.8 billion, CEO Shailesh Jejurikar told CNBC on Tuesday, as the consumer goods giant deepens its push into health and wellness to capitalize on growing demand for self-care products.
“What I can say is the price is a good price for the growth rates they have. It’s kind of in line with the industry benchmarks we’ve seen,” Jejurikar told CNBC in an interview, adding that the company would announce the deal later in the day without giving further details.
P&G and Thorne did not immediately respond to Reuters requests for comment seeking additional details on the acquisition.
The takeover marks a major push by P&G into the health and wellness market, aligning the consumer goods giant with a growing focus on healthier lifestyles fueled by rising interest in preventive care and the popularity of weight-loss drugs.
P&G’s supplements brands portfolio currently includes New Chapter, Metamucil and Align Probiotic.
LVMH-backed private equity firm L Catterton took Thorne private in a $680 million deal in 2023. Thorne was the subject of a bid from consumer health company Haleon, sources told Reuters in June, but Jejurikar declined to say whether P&G had won an intense bidding war.
The deal would represent a strong return on investment of more than $3 billion for L Catterton, which had no immediate comment.
Thorne, founded in 1984, went public in 2021 and was forecasting annual sales of $290 million in 2023 before the L Catterton deal took the company private. CNBC reported in April that Thorne was set to reach $650 million in sales this year.
Major multinationals are jostling for space in the crowded vitamins, minerals and supplements (VMS) sector.
P&G rival Unilever in April announced a deal to buy U.S.-based nutritional supplements brand Gruns for an undisclosed amount, while Nestle is conducting a strategic review of its low-growth, low-margin VMS brands.
Last week, P&G forecast slower annual sales growth, even as its beauty and wellness division posted strong results, helped by consumers’ willingness to spend on discretionary self-care products.
The deal was “a clear indicator of where consumer demand is currently strongest,” and would help offset softness the company is experiencing in other categories, said Rachel Wolff, senior analyst at Emarketer.
P&G shares were up about 1% in afternoon trading on Tuesday.
(Reporting by Juveria Tabassum in Bengaluru and Alexander Marrow in London; Editing by Anil D’Silva and Shreya Biswas)
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