NEW YORK, August 5, 2026, 10:06 EDT — U.S. cash trading has started.
- The $3.8 billion all-cash acquisition gives Thorne a valuation equal to 5.85 times its expected sales for 2026.
- Thorne represents 0.75% of P&G’s total sales, while accounting for 5.2% of Health Care sales.
- P&G stock was down 1.5% at 9:50 EDT, wiping out around three-quarters of its gain from Tuesday.
Procter & Gamble has reached a deal to acquire Thorne in a cash transaction valued at $3.8 billion. The deal values Thorne at 5.85 times its anticipated 2026 revenue, presenting ambitious growth expectations.
Thorne’s sales are forecast to reach $650 million this year, while P&G reported $87.0 billion in revenue for fiscal 2026. The acquisition will therefore increase the company’s revenue base by just 0.75%.
Thorne’s projected sales grew from $290 million in 2023 to $650 million, indicating a compound annual growth rate of 30.9% over three years. Sustaining this growth would contribute about $201 million each year, or 23 basis points to P&G’s sales.
The agreement is more significant within Health Care. Thorne accounts for 5.2% of the division’s projected fiscal 2026 revenue. Last year, the division’s organic volume declined by 2%.
Transaction economics
| Metric | Figure | Investor reading |
|---|---|---|
| Cash purchase price | $3.80 billion | Significant add-on, not game-changing |
| Thorne projected 2026 sales | $650 million | Initial projection |
| Purchase price/projected sales | 5.85 times | Needs premium growth to hold |
| Thorne projected 2023 sales | $290 million | Estimate before buyout |
| Implied 2023–2026 sales CAGR | 30.9% | Key to support the price |
| L Catterton’s 2023 transaction value | $680 million | Reference for earlier deal |
| Headline transaction-value increase | $3.12 billion | 5.59 times 2023 valuation |
| Share of P&G fiscal 2026 sales | 0.75% | Minimal effect at group scale |
| Share of P&G Health Care sales | 5.2% | Greater effect in the division |
| Price/fiscal 2026 operating cash flow | 19.4% | Within financial limits |
| Price/year-end cash balance | 38.2% | How it’s funded still matters |
Figures are based on forecasted Thorne revenue and P&G’s reported numbers for fiscal 2026. The transaction value should not be interpreted as L Catterton’s fund-level return. Details regarding leverage and later investments have not been made public.
Chief Executive Shailesh Jejurikar on Tuesday defended the valuation, describing it as “a good price for the growth rates they have.” Jejurikar noted the multiple was aligned with recent industry averages. LinkedIn
P&G Health Care head Paul Gama stated that Thorne enhances the company’s premium wellness offering. Both firms anticipate the deal will close in 2026. The transaction is still subject to regulatory and standard closing conditions.
L Catterton acquired Thorne in 2023 for $680 million. The current price is 5.6 times higher than that deal. While revenue growth accounts for some of the gain, a higher multiple is also a factor.
P&G business environment
| Indicator | Latest figure | Change or outlook |
|---|---|---|
| Fiscal 2026 net sales | $87.0 billion | +3% |
| Fiscal 2026 organic sales | — | +1% |
| Fiscal 2026 group volume | — | Unchanged |
| Fiscal 2026 Health Care sales | $12.46 billion | +4% |
| Fiscal 2026 Health Care organic volume | — | -2% |
| Fourth-quarter Health Care organic sales | — | -1% |
| Fourth-quarter core EPS | $1.43 | -3% |
| Fiscal 2027 organic-sales guidance | — | Growth of +1% to +3% |
| Fiscal 2027 core-EPS guidance | $6.89–$7.11 | Stable to +3% |
| Fiscal 2027 cost headwind | About $1 billion after tax | Costs for raw materials, energy, and freight |
| Two-year restructuring charges | $1.0–$1.6 billion before tax | Majority recognized in fiscal 2026 |
Source: P&G fiscal 2026 performance and outlook.
The situation highlights the pressure. In fiscal 2026, organic sales gains came solely from higher prices. Volumes remained unchanged, and fourth-quarter core earnings fell.
The job cuts do not represent a fresh, transaction-related disclosure. P&G had announced plans for as many as 7,000 layoffs in non-manufacturing roles in June 2025. The firm anticipates completing the rest of the restructuring process in fiscal 2027.
Market overview and wellness peer comparison
| Security or company | Latest move | Relevant development |
|---|---|---|
| P&G | -1.55% at $145.72 | To acquire Thorne for $3.8 billion |
| Consumer Staples Select Sector SPDR Fund (NYSEARCA:XLP) | -0.60% | Sector tracker |
| Haleon NYSE:HLN | +0.10% | Thorne interest reported in June |
| Unilever NYSE:UL | -0.17% | Purchased Grüns supplements in April |
| Nestlé SWX:NESN | Not shown | Evaluating vitamin products with slow growth and slimmer margins |
Prices reflect the most recent trades as of approximately 9:50 EDT. Strategic updates are sourced from Reuters.
P&G shares rose 2.1% on Tuesday, ending the session at $148.01 after an initial positive market reaction. By Wednesday morning, roughly 75% of those gains had faded.
Activity among peers highlights a fragmented supplements sector. Acquirers are targeting high-end brands that maintain direct relationships with consumers and practitioners. Meanwhile, slower-growing and less profitable vitamin businesses are undergoing assessments or may be considered for divestment.
Latest analyst ratings for P&G
| Research firm | Date | Recommendation | Target | Upside from $145.72 |
|---|---|---|---|---|
| Deutsche Bank ETR:DBK | July 30 | Buy | $162 | 11.2% |
| Citigroup NYSE:C | July 30 | Buy | $170 | 16.7% |
| Jefferies Financial Group NYSE:JEF | July 30 | Buy | $177 | 21.5% |
| HSBC Holdings LON:HSBA | July 30 | Hold, lowered from Buy | $149 | 2.3% |
| Evercore NYSE:EVR | July 29 | In Line | $161 | 10.5% |
| 25-analyst consensus | Current | Outperform | $160.70 | 10.3% |
Broker updates were made after P&G reported results on July 29 and before the Thorne news.
Analysts continue to expect gains, though their price targets do not factor in any new deals. The average target is $160.70, representing a 10.3% premium to the most recent Wednesday price.
Risks: Thorne’s expansion may lose momentum following integration. Broader distribution could undermine its practitioner-focused image. Regulatory setbacks, reduced premium demand, and a 5.85-times sales valuation limit margin for error.
The deal is financially sustainable, representing 19.4% of yearly operating cash flow and 1.1% of P&G’s market capitalization. The strategic benefit, however, relies on sustaining Thorne’s growth well ahead of P&G’s pace.
This is the main challenge facing the deal.
