P&G buys supplements maker Thorne as health and wellness push intensifies

By Alexander Marrow and Juveria Tabassum

Aug 4 (Reuters) – Procter & Gamble is acquiring supplements maker Thorne from LVMH-backed private equity firm L Catterton, the companies said on Tuesday, as consumers spend on self-care products despite broader ​economic strain.

The takeover marks a major push by Tide detergent maker ‌P&G into the health and wellness market, aligning the consumer goods giant with a growing focus on healthier lifestyles fueled by rising interest in preventive care and weight-loss drugs.

Top multinational consumer goods giants are jostling for space in the crowded vitamins, minerals and supplements (VMS) sector.

P&G shares were ‌up ​about 1% in afternoon trading following the news.

CEO ⁠Shailesh Jejurikar first said P&G would ⁠buy Thorne for $3.8 billion in an interview with CNBC earlier on Tuesday. Thorne and P&G did not confirm the deal amount in response to Reuters’ queries.

P&G rival Unilever in April announced a deal to buy U.S.-based nutritional ​supplements brand Gruns for an undisclosed amount, while Nestle is conducting a strategic review of its low-growth, low-margin VMS brands.

P&G, whose supplements brands portfolio currently includes ⁠New Chapter, Metamucil and Align Probiotic, last week ⁠forecast slower annual sales growth, even as its beauty and ​wellness division posted strong results on the back of consumers’ willingness to spend on ​discretionary self-care products.

The health and wellness sector was expanding much faster ‌than the P&G household staples, said Jay Woods, chief market strategist at Freedom Capital Markets.

The premium nutritional supplements would potentially offer P&G a way to reach younger consumers, he added.

“This acquisition is more strategic than anything. It keeps a competitor like ⁠Unilever out of the space for now.”

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, but Jejurikar declined to say whether P&G had ⁠won an intense bidding war.

The deal would represent a ​strong return ‌on investment of more than $3 billion for L Catterton, ​which had no ⁠immediate comment.

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. CNBC reported in April that Thorne was set to reach $650 million in sales this year.

(Reporting by Juveria Tabassum in Bengaluru and Alexander Marrow in London; Editing by Anil ​D’Silva and Shreya Biswas)