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

By Alexander Marrow and Juveria Tabassum

Aug 4 (Reuters) - Procter & Gamble <PG.N> 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)