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Procter & Gamble to buy Thorne for $3.8B as fiscal 2027 outlook disappoints
P&G said its fiscal 2027 core EPS growth is expected to be 0% to 3% after about $1.0B in after-tax commodity, energy, and transportation cost headwinds.
Procter & Gamble agreed to buy science-backed health and wellness brand Thorne from L Catterton in an all-cash deal valued at $3.8 billion, setting up P&G for an expansion into the wellness category. L Catterton said Thorne has spent 40 years building relationships with healthcare practitioners, and it highlighted a proprietary AI wellness advisor intended to guide consumers through its supplement lineup.
The acquisition lands one day after an analysis pointed to P&G’s fiscal 2027 earnings guidance coming in below expectations, with roughly $1.0 billion in new cost headwinds identified as a key pressure point. P&G guided core EPS to $6.89 to $7.11, implying growth of 0% to 3%, and it cited after-tax commodity, energy, and transportation costs of about $1.0 billion as a major contributor.
Management also attributed additional drag to higher net interest expense, lower non-operating income, and unfavorable currency. In the company’s framework, those factors add up to a total $0.56 per share hit, wiping out about 8 percentage points of core earnings growth before the year even starts.
P&G’s recent results reflected the same cautious tone. In fiscal fourth-quarter trading, net sales rose 2% year over year to $21.2 billion, while organic sales were flat and core EPS fell 3% to $1.43. P&G said the Thorne deal is expected to close in the fourth quarter of 2026, and it returned $10.2 billion in dividends and $5.0 billion in share repurchases during fiscal 2026, planning a similar roughly $10 billion and $5 billion combination for fiscal 2027.