P&G to Acquire Thorne for $3.8B Amid Cost Headwinds

Published Aug 9, 06:35 PM UTC

Procter & Gamble agreed to acquire Thorne, a science-backed wellness brand, from L Catterton for $3.8 billion in cash, closing in Q4 2026. The deal comes a day after P&G issued a fiscal 2027 earnings guide below expectations, citing roughly $1 billion in new commodity, energy, and transportation cost headwinds. Core EPS is guided to $6.89-$7.11, implying 0-3% growth. In fiscal Q4, net sales rose 2% to $21.2B but organic sales were flat, and core EPS fell 3% to $1.43. P&G plans to return $10B in dividends and $5B in buybacks in fiscal 2027. Hedge fund ownership fell from 90 to 78 funds, while short interest is low at 0.99% of float. The article presents both a bull case (wellness expansion, clinical credibility) and a bear case (cost pressures, low growth guidance).