P&G Buys Supplement Brand Thorne for $3.8 Billion

Procter & Gamble has made a significant move in its health and wellness division by acquiring supplement brand Thorne for $3.8 billion. The acquisition is part of P&G's strategy to invest in emerging brands that appeal to younger audiences, as CEO Shailesh Jejurikar expressed during an interview on CNBC's 'Squawk on the Street'. Thorne has experienced impressive growth since its establishment in 1984 and has a projected annual revenue of over $500 million in 2025. The brand has also capitalized on the trend of direct-to-consumer sales, which have surged in recent years as consumers seek vitamins and supplements to enhance their health.

Thorne went public in late 2021 with a valuation of $525 million but was later taken private by L Catterton in 2023 for $680 million. This acquisition marks P&G's commitment to owning premium brands that resonate with health-conscious consumers, as seen in the company's earlier move to acquire gummy supplement brand Grüns. Despite stagnant volume and less-than-expected revenue outcomes within its healthcare segment, P&G shares saw a slight increase following the announcement.