Procter & Gamble has agreed to acquire Thorne, a supplements manufacturer, in a $3.8 billion cash deal expected to close in the fourth quarter of 2024. The transaction highlights P&G’s ongoing strategy to expand its presence in the health and wellness sector amid growing consumer interest in self-care and personalized health solutions.

Thorne, headquartered in South Carolina, offers a range of dietary supplements, including magnesium and omega-3 products. The company is projected to generate approximately $650 million in revenue this year. The supplements maker gained market visibility through partnerships with athletes and sports organizations such as Major League Rugby in North America.

The acquisition follows strong competition for Thorne, with other major consumer goods companies reportedly expressing interest. Earlier this year, reports indicated that Unilever had also considered purchasing the firm.

Thorne had been under the ownership of L Catterton, a private equity firm backed by luxury conglomerate LVMH. L Catterton acquired Thorne in 2023 in a take-private deal valued at $680 million, marking a substantial return on investment less than three years later. Since taking the company private, L Catterton has focused on accelerating growth by enhancing leadership, increasing marketing efforts, and investing in research and development, according to the firm’s managing partner, Marc Magliacano.

P&G’s acquisition of Thorne fits into a broader trend of targeting premium wellness brands to meet shifting consumer preferences. Paul Gama, P&G’s chief executive of healthcare, noted that the company aims to strengthen its position in the wellness market amid rising demand for prevention and personalized health products.

This deal adds to P&G’s expanding portfolio in consumer health, following the company’s $4.2 billion acquisition of Merck KGaA’s consumer health unit and its more recent purchase of Wonderbelly, a digestive health brand also backed by L Catterton. P&G already owns New Chapter vitamins, further bolstering its presence in the supplements market.

Despite these strategic investments, P&G has recently faced challenges from rising commodity costs and softer consumer sentiment, which contributed to a failure to increase sales volumes in its most recently completed fiscal year. The acquisition of Thorne is seen as part of its efforts to drive growth in a competitive segment.