L Catterton entered into a definitive agreement to take Thorne HealthTech (Thorne) private by acquiring all shares of common stock for $10.20 each in cash. Thorne’s independent special committee and board of directors have unanimously backed the deal are urging all stockholders to take the $680 million offer.
New York-based Thorne develops, manufactures and markets health supplements. The company went public in September 2021in a $70 million IPO at a $525.1 million valuation. L Catterton’s offer values the company at a 113% premium to the 30-day volume weighted average price as of July 20.
“We have admired Thorne for many years given its uncompromising approach to science and innovation as well as its commitment to transforming consumers’ lives and approach to health and wellness,” said Marc Magliacano, a managing partner in L Catterton’s Flagship Fund.
Thorne collaborates with the Mayo Clinic on research and on the production of wellness content. The company also provides online consultations and uses artificial intelligence models to provide personalized data, products and services. “As one of the pioneers of the wellness movement, Thorne continues to lead by example and is on the precipice of breakthrough products and technologies that will allow consumers to significantly extend their healthspans through personalized wellness programs developed by Thorne’s proprietary dataset and protocols,”Magliacano added.
Consumer-focused investment firm L Catterton has $34 billion in assets under management across private equity, credit and real estate. Its investments in the health and wellness sector include the yoga studio chain CorePower Yoga; Energy Brands, the company behind the Smart Water line of functional soft drinks; OneSpaWorld, which provides spa services aboard cruise ships and at resorts; and Saje Natural Wellness, a developer and marketer of private-label essential oils and skin care products.
The transaction is expected to be completed in the fourth quarter, subject to customary closing conditions and regulatory approvals. Canaccord Genuity acted as exclusive financial advisor to Thorne and the special committee of the board of directors, while Wilson Sonsini Goodrich & Rosati served as legal advisor to the company. BofA Securities served as financial advisor to L Catterton, while Kirkland & Ellis acted as legal advisor.