P&G Drops $3.8 Billion on Supplements Maker Thorne
Procter & Gamble (P&G) has made a major move into the health and wellness market by acquiring supplements maker Thorne for $3.8 billion in cash.
The takeover from LVMH-backed private equity firm L Catterton marks a significant push by P&G into the vitamins, minerals, and supplements (VMS) sector, where top multinational consumer goods giants are competing for space.
P&G's shares were up about 1% in afternoon trading following the news. The company has been expanding its portfolio of supplements brands, which currently includes New Chapter, Metamucil, and Align Probiotic.
Rajan Shah, a partner at L Catterton, said that P&G was best positioned to build on the growth acceleration Thorne had overseen since going private. Thorne was forecast to reach $290 million in annual sales this year before being taken private, but is now expected to exceed $650 million.