Strengthening the health landscape, Procter & Gamble (PG.US) acquires health supplement company Thorne for $3.8 billions in cash

According to information from Zhihu Finance APP, consumer goods giant Procter & Gamble (PG.US) announced on Tuesday that it will acquire the nutritional supplement brand Thorne for $3.8 billion in cash from private equity fund L Catterton, a subsidiary of the LVMH Group. This transaction marks a significant bet by the Tide detergent manufacturer on the health and wellness market, aiming to seize the ongoing wave of consumer demand for self-care products.

Procter & Gamble CEO Shailesh Jejurikar first revealed the news in an interview. He expressed high praise for Thorne's asset quality, calling it a long-established and excellently operated company. This acquisition will make Thorne a member of Procter & Gamble’s health care division, forming synergy with its supplement brands such as Metamucil, Align probiotics, and New Chapter vitamins.

From a financial return perspective, the deal has been highly lucrative for L Catterton. The fund had taken Thorne private in 2023 for $680 million and is now selling it for $3.8 billion, meaning it achieved an investment return of more than $3 billion in a few years. L Catterton partner Rajan Shah stated that he firmly believes Procter & Gamble is the best place to accelerate Thorne’s ongoing growth.

Founded in 1984, Thorne has witnessed rapid growth in recent years. When it went public in 2021, the company was valued at about $525 million, and before being privatized in 2023, it was expected to achieve annual sales of $290 million. According to Thorne’s published data, its revenue for the 2025 fiscal year has surpassed $500 million; and, as reported in April this year, Thorne’s sales are expected to reach $650 million in 2024.

Thorne CEO Colin Watts stated earlier that the brand has the potential to enter the billion-dollar brand club in the next few years. Notably, the majority of Thorne’s revenue comes from younger consumers under the age of 40, and its direct-to-consumer sales channels are growing particularly fast, aligning perfectly with Procter & Gamble’s strategy to reach younger demographics and inject vitality into its brands.

Although Thorne accounts for only a small part of Procter & Gamble’s vast product portfolio, this acquisition demonstrates the company’s strategic direction of possessing influential, premium brands that are favored by younger consumers. In Procter & Gamble’s most recent quarter, sales were flat, resulting in revenues falling short of expectations, with the health care division showing the weakest performance by volume.

From an industry competition perspective, consumer goods giants are all competing for a share of the vitamin, mineral, and supplement market. In April, Procter & Gamble’s competitor Unilever (UL.US) announced the acquisition of US gummy supplement brand Grüns, while Nestle (NSRGY.US) is conducting a strategic review of its own slow-growing and low-margin supplement brands.

Additionally, the “Make America Healthy Again” campaign, led by US Secretary of Health and Human Services Robert F. Kennedy, has also increased public attention on vitamins and other supplements to some extent. Earlier, it was reported that consumer health company Haleon (HLN.US) also made a bid for Thorne, but Jejurikar declined to comment on whether Procter & Gamble won a fierce bidding war.