Procter & Gamble is acquiring supplements maker Thorne for $3.8 billion, CEO Shailesh Jejurikar told CNBC.
Jejurikar , who took the company helm in January, said the acquisition is in keeping with P&G’s plans to bolster its beauty and health businesses.
“What I can say is the price is a good price for the growth rates they have,” Jejurikar said, declining to discuss whether P&G made the deal amid a bidding war for the company. He noted further details would be disclosed later on Aug. 4.
Private equity firm L Catterton took Thorne private in a $680 million deal in 2023. Thorne was the subject of a bid from consumer health company Haleon, sources told Reuters in June.
Health is a big business for P&G
P&G’s health care business, which includes Metamucil, Neurobion, Pepto-Bismol, and Vicks brands, generated $12.5 billion in sales in the fiscal year ended June 30, according to company disclosures. The company sells supplements under its New Chapter, Metamucil and Align Probiotic labels.
Thorne, founded in 1984, went public in 2021 and was forecasting annual sales of $290 million in 2023 before the L Catterton deal took the company private, Reuters reported. CNBC reported in April that Thorne was set to reach $650 million in sales this year.
The acquisition comes a week after P&G reported relatively flat sales that fell short of Wall Street expectations and the company also forecast modest sales growth for the fiscal year that just began.
This article originally appeared on Cincinnati Enquirer: P&G to buy supplements maker Thorne for $3.8B, CEO says
Reporting by Alexander Coolidge, Cincinnati Enquirer / Cincinnati Enquirer
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By Alexander Coolidge, Cincinnati Enquirer | USA TODAY Network
