P&G Acquires Thorne for $3.8 Billion, Enters Supplements Market
Procter & Gamble (P&G) is expanding its presence in supplements by acquiring Thorne for $3.8 billion, a move that highlights the growing importance of self-care products in consumer spending.
P&G CEO Shailesh Jejurikar told CNBC that the price is 'in line with industry benchmarks,' according to Reuters. The deal adds Thorne's brand to P&G's existing supplements roster, which includes New Chapter, Metamucil, and Align.
The acquisition builds on momentum in P&G's beauty and wellness business, where shoppers have continued to spend on discretionary self-care products even as overall sales growth is expected to slow down. Thorne's growth has been a significant factor in the appeal of this deal, with Reuters reporting that the brand was forecasting $290 million in annual sales in 2023 before being taken private by L Catterton in a $680 million deal.
This acquisition fits into a wider trend of big consumer companies competing for market share in the supplements industry. Unilever agreed to buy US-based Gruns in April, and Nestlé is reviewing its slower-growth vitamins, minerals, and supplements brands as interest in preventive care and weight-loss drugs reshapes demand.
The $3.8 billion deal price gives the supplements space a new reference point for valuations, with P&G paying roughly six times revenue based on Thorne's current sales or 13 times revenue based on its projected 2023 forecast.