Strengthening its health portfolio, Procter & Gamble Company (PG.US) has acquired health supplement company Thorne for $3.8 billion in cash.

Consumer goods giant Procter & Gamble Company (PG.US) announced on Tuesday that it will acquire the nutritional supplement brand Thorne for $3.8 billion in cash from LVMH Group's private equity fund L Catterton. This deal marks a significant bet by the Tide detergent manufacturer on the health and wellness market, aiming to capitalize on the ongoing strong consumer demand for self-care products. Procter & Gamble Company CEO Shailesh Jejurikar disclosed the news in an interview. He expressed high recognition of the quality of Thorne's assets, calling it a well-established and excellently operated company. This acquisition will make Thorne a part of Procter & Gamble Company's healthcare division, creating synergy with its existing supplement brands such as Metamucil, Align probiotics, and New Chapter vitamins. From a financial return perspective, this deal has been highly profitable for L Catterton. The firm privatized Thorne for $680 million in 2023 and is now selling it for $3.8 billion, which means it has gained over $3 billion in investment returns over the years. L Catterton partner Rajan Shah expressed confidence that Procter & Gamble Company is the best home to drive Thorne's continued growth. Thorne, founded in 1984, has seen rapid growth in recent years. The company was valued at approximately $525 million when it went public in 2021 and was expected to achieve annual sales of $290 million before its privatization in 2023. According to data released by Thorne, its revenue for the fiscal year 2025 has already exceeded $500 million; and reports from April of this year suggested that Thorne's sales could reach $650 million this year. Thorne CEO Colin Watts stated earlier that the brand has the potential to join the billion-dollar brand club in the coming years. Notably, most of Thorne's revenue comes from younger consumers under 40, with particularly strong growth in its direct-to-consumer sales channels, aligning perfectly with Procter & Gamble Company's strategic intent to engage younger demographics and inject vitality into its brands. Although Thorne represents a small portion of Procter & Gamble Company's vast product portfolio, this acquisition underscores the company's strategic direction towards owning impactful and highly favored premium brands among young consumers. In Procter & Gamble Company's most recent fiscal quarter, sales remained flat, leading to revenue falling short of expectations, with the healthcare segment showing the weakest performance in volume. In terms of the competitive landscape, consumer goods giants are fiercely competing for a share of the vitamins, minerals, and supplements market. In April of this year, Procter & Gamble Company's competitor Unilever PLC Sponsored ADR (UL.US) announced the acquisition of the U.S. gummy supplement brand Grns, while Nestl (NSRGY.US) is conducting a strategic assessment of its slower-growing, lower-margin supplement brands. Additionally, the "Make America Healthy Again" movement, advocated by U.S. Secretary of Health and Human Services Robert F. Kennedy, has somewhat heightened public attention towards vitamins and other supplements. Earlier reports indicated that consumer health company Haleon (HLN.US) had also made a bid for Thorne, but Jejurikar declined to comment on whether Procter & Gamble Company won a competitive bidding war.