P&G Acquires Supplement Brand Thorne for $3.8 Billion in Major Health Bet

Procter & Gamble has agreed to acquire supplement brand Thorne for $3.8 billion, CEO Shailesh Jejurikar confirmed on CNBC’s “Squawk on the Street” Tuesday. The deal marks a significant expansion of the consumer goods giant’s health and wellness division and represents one of the largest acquisitions in the vitamins, minerals and supplements sector this year.

“We are really happy with the asset itself,” Jejurikar told CNBC’s Sara Eisen. “It’s a really well-run operation, and it’s been around for a long time.” The CEO added that the price aligns with industry benchmarks given Thorne’s growth rates, though he declined to provide further details on the acquisition structure.

The acquisition, set to be formally announced Tuesday, positions P&G to capitalize on surging consumer demand for self-care products and preventive health solutions. The company already owns several supplement brands including Metamucil, Align Probiotic, and New Chapter vitamins, all housed within a broader healthcare division that includes Oral-B and Vicks.

Thorne’s Journey From Public to Private to Corporate Giant

Thorne was founded in 1984 and went public in late 2021 at a valuation of $525 million. Private equity firm L Catterton, backed by LVMH, took the company private in 2023 in a deal valued at $680 million. The latest transaction represents a strong return on investment of more than $3 billion for L Catterton in just over two years.

The supplement brand’s revenue trajectory demonstrates impressive momentum in a crowded market. Thorne was forecasting annual sales of $290 million in 2023 before the L Catterton deal, and its annual revenue surpassed $500 million in 2025 according to company figures. CNBC reported in April that Thorne would reach $650 million in sales this year, underscoring the brand’s rapid expansion.

Thorne CEO Colin Watts told CNBC earlier this year that the company had the potential to become a billion-dollar brand within the next few years. The majority of Thorne’s revenue comes from shoppers under the age of 40, and the supplement brand has seen a surge in direct-to-consumer sales, positioning it well for continued growth in digitally native channels.

Consumer Giants Crowd the Self-Care Market

The deal illustrates how major multinationals are jostling for space in the crowded vitamins, minerals and supplements sector as consumers increasingly turn to these products to improve every aspect of their health, from sleep to energy levels. The “Make America Healthy Again” movement, led by Health and Human Services Secretary Robert F. Kennedy Jr., has also leaned into supplements, with Kennedy himself saying he takes so many vitamins that he cannot remember them all.

P&G is the latest consumer giant to buy a buzzy upstart in a bid to profit from the self-care trend. Earlier this year, Unilever bought Grüns, a gummy supplement brand, for an undisclosed amount. Meanwhile, Nestlé is conducting a strategic review of its low-growth, low-margin VMS brands as the sector reshapes around preventive care and the rise of weight-loss drugs.

Consumer health company Haleon was also reportedly interested in Thorne according to sources who spoke to Reuters in June, though Jejurikar declined to say whether P&G had won an intense bidding war. The takeover marks a major push by 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.

Strategic Fit for P&G’s Premium Brand Portfolio

Thorne will represent a small piece of P&G’s broader portfolio, but the deal demonstrates the company’s aim of owning relevant, premium brands that appeal to younger consumers. This strategy becomes particularly important as the company faces volume challenges across its core business. In P&G’s latest quarter, its volume was flat, leading to worse-than-expected revenue, and its healthcare segment was the worst performer based on volume.

Last week, P&G forecast slower annual sales growth, even as its beauty and wellness division posted strong results, helped by consumers’ willingness to spend on discretionary self-care products. The acquisition would help offset softness in other categories and position the company to capture demographic trends favoring wellness spending among younger shoppers.

“What I can say is the price is a good price for the growth rates they have. It’s kind of in line with the industry benchmarks we’ve seen,” Jejurikar told CNBC in an interview.

Deal Valuation Sets New Benchmark for Supplements Sector

The $3.8 billion price tag puts a fresh valuation marker on the supplements space that could influence future transactions. Using CNBC’s $650 million sales figure for this year, P&G appears to be paying roughly six times revenue. If anchored to Reuters’ $290 million 2023 forecast, the multiple climbs closer to 13 times.

Deal prices often become shorthand in negotiations, and this headline multiple can reset what sellers ask for and what buyers must justify, especially when strategic buyers compete with private equity. The price could influence how investors frame the next wave of deals, from what Haleon might need to pay for similar assets to what Nestlé can expect to fetch as it reviews its supplements portfolio.

Shares of P&G traded up less than 1% in morning trading on Tuesday following the announcement. The takeover represents a clear indicator of where consumer demand currently stands strongest and highlights how established consumer goods companies are deploying capital to capture growth in the fast-evolving health and wellness category.