Procter & Gamble has agreed to acquire supplements brand Thorne from private equity firm L Catterton for $3.8 billion in cash, the companies announced on Tuesday, as the consumer goods giant expands its health and wellness portfolio to capture growing consumer demand for premium nutrition products.

The acquisition, which is expected to complete in the fourth quarter subject to regulatory approvals and customary closing conditions, adds a fast-growing supplements brand to P&G's stable of consumer health businesses. Founded in 1984, Thorne sells products including magnesium and omega-3 supplements through direct-to-consumer channels, healthcare practitioners and retail partners, with a customer base skewed towards consumers under 40.

Paul Gama, chief executive of P&G Health Care, said: "Consumer interest in self-care, prevention, wellness, and personalised health continues to grow, and Thorne strengthens our position in premium wellness with a trusted, science-backed brand that complements our existing portfolio." Colin Watts, chief executive of Thorne, said: "We believe P&G is the right partner to help us expand our impact while staying true to the values and standards that have always defined Thorne."

According to the Financial Times, Thorne is on track to generate around $650 million in revenue this year, highlighting the rapid growth of the premium supplements category as consumers continue to increase spending on preventative health and wellbeing products.

LVMH-backed L Catterton acquired the company for $680 million in 2023, making the sale one of the firm's strongest recent consumer investments after expanding Thorne's leadership team, marketing activities and research capabilities.

The deal reflects increasing competition among global consumer goods companies to strengthen their positions in the fast-growing vitamins, minerals and supplements market. Unilever acquired nutritional supplements brand Grüns earlier this year, while Nestlé is reviewing parts of its vitamins and supplements portfolio as manufacturers reshape their health and wellness strategies.

For P&G, the acquisition builds on an established consumer health business that already includes New Chapter vitamins, Metamucil and Align Probiotic. The addition of Thorne gives the retailer supplier another premium brand with strong appeal among younger consumers and broadens its offering at a time when traditional household goods categories have delivered slower volume growth.

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