L Catterton explores sale of supplement maker Thorne for up to US$4 billion
Private equity firm L Catterton is exploring the sale of dietary supplement company Thorne, with an asking price of up to US$4.0 billion ($5.7b). The potential sale comes less than three years after L Catterton took Thorne private in October 2023 for an enterprise value of approximately US$680 million ($966m).
Transaction snapshot
Deal value: Up to US$4.0 billion ($5.7b). This compares to the US$680 million ($966m) enterprise value paid in the October 2023 take-private — a roughly 5.9x increase in under three years.
Deal multiples: The 2023 take-private was executed at approximately 2.7x trailing twelve-month (TTM) revenue of US$255 million ($362m) and approximately 34x TTM earnings of roughly US$20 million ($28m). Industry analysis estimates current revenue at approximately US$780 million ($1.1b), implying a forward revenue multiple of roughly 5.1x at the US$4.0 billion asking price.
Deal type: Secondary sale (PE exit). L Catterton is running a sale process. The potential buyer is undisclosed.
Investors: L Catterton, a global consumer-focused private equity firm managing approximately US$34 billion ($48.3b) in equity capital. L Catterton first acquired a majority stake in Thorne in 2016 and subsequently took the company private in October 2023.
Thorne was founded in 1984 by Al Czap in Dover, Idaho, originally operating as Thorne Research. The company built a following among functional medicine practitioners and professional athletes for its professional-grade, hypoallergenic dietary supplements.
Under L Catterton's ownership, Thorne shifted toward personalisation and data-driven wellness. The company rebranded as Thorne HealthTech and listed on the Nasdaq in September 2021. L Catterton then took Thorne private in October 2023 at US$10.20 per share. That price represented a 94% premium to the unaffected closing share price and a 113% premium to the 30-day volume-weighted average price as of 20 July 2023. Only approximately US$125 million ($178m) of the take-private was financed with debt, roughly 20% of the deal value.
Since going private, Thorne appears to have grown significantly. Industry estimates suggest quarterly revenue has increased from approximately US$72 million ($102m) at the time of the take-private to roughly US$195 million ($277m), implying annualised revenue of around US$780 million ($1.1b). That represents approximately 2.7x revenue growth in two and a half years.
Several tailwinds are working in Thorne's favour. The GLP-1 medication boom has driven broader consumer interest in health optimisation. Creatine has moved into the mainstream. The longevity and preventative health category continues to gain traction. Thorne sits at the intersection of all three trends.
The company is the only supplement manufacturer that collaborates with Mayo Clinic on health and wellness research. It counts more than five million customers, 47,000 healthcare professionals, and over 100 professional sports teams among its users.
The identity of potential buyers remains unclear. Industry commentary has speculated on large consumer goods companies such as Unilever or Procter & Gamble, though the US$4.0 billion price tag would represent a significant transaction for either. Unilever has been active in the wellness space, having previously acquired Liquid IV and Onnit, but its stated annual M&A budget sits at approximately US$1.5 billion ($2.1b). Mars, which has a growing wellness division, has also been mentioned as a possibility.
