P&G agrees $3.8bn acquisition of Thorne, delivering major exit for L Catterton

Procter & Gamble has agreed to acquire nutritional supplements company Thorne in an all-cash deal valued at $3.8bn, providing L Catterton with a lucrative exit just three years after taking the business private, according to a report by Bloomberg.

The transaction highlights continued private equity value creation in the health and wellness sector, with L Catterton expected to generate a return of more than $3bn on its investment after acquiring Thorne for approximately $680m in 2023.

For Procter & Gamble, the acquisition significantly expands its presence in the fast-growing vitamins, minerals and supplements market, where demand continues to be driven by consumers’ increasing focus on preventative healthcare, self-care and wellness.

The deal adds Thorne to P&G’s existing health portfolio, which includes brands such as New Chapter, Metamucil and Align Probiotic, and reflects a broader trend of consumer goods companies pursuing acquisitions in higher-growth wellness categories.

The sale also demonstrates the continued appetite for established nutrition brands. Earlier this year, Unilever agreed to acquire US supplements company Gruns, while Nestlé has been reviewing parts of its vitamins, minerals and supplements portfolio as major consumer groups reshape their health and nutrition businesses.

L Catterton acquired Thorne in a take-private transaction in 2023, having identified opportunities to accelerate the company’s growth in the premium supplements market. Since then, the business has expanded significantly, with industry reports indicating it is on track to generate approximately $650 million in revenue this year.

L Catterton Partner Rajan Shah said Procter & Gamble is well positioned to build on the growth achieved during the firm’s ownership and support the company’s next phase of expansion.

The acquisition follows reports that Thorne attracted interest from multiple strategic buyers, underlining the strong demand for scaled health and wellness businesses with established brands and attractive growth profiles.

The transaction marks another notable private equity-backed exit in the consumer sector, as sponsors continue to realise investments in businesses benefiting from long-term structural trends around health, nutrition and preventative care.