P&G Acquires Thorne in $3.8 Billion Supplement Deal
Procter & Gamble will acquire Thorne, a supplement manufacturer founded over 40 years ago in the Pacific Northwest, for $3.8 billion. This purchase gives private equity firm L. Catterton a spectacular 77% rate of return on its investment.
The deal is set to close later this year, pending regulatory approvals. Thorne has relocated from Sandpoint, Idaho, to a dedicated manufacturing facility in Summerville, South Carolina, under the leadership of former CEO Paul Jacobsen.
Thorne has branched out from its practitioner-channel base to retail supplements and consumer health tests in recent years. Scott Steinford, CEO of contract manufacturer PreMark Health Sciences, views Thorne's growth as a positive example of private equity acquisitions.
Experts such as Marc Brush, a longtime industry strategy consultant, believe P&G has done a better job than most at maintaining brand equity for its supplement acquisitions, including New Chapter in 2012. However, Brush notes that protecting quality and trust will be a challenge for Thorne to meet its growth targets.