THE WHAT? Church & Dwight has signed a definitive agreement to acquire the Hero Mighty Patch brand (Hero) and other acne treatment products for US$630 million, consisting of cash and Church & Dwight restricted stock.
THE DETAILS According to a press release, the acne patch is the fastest growing treatment form in acne, with Hero’s net sales for the trailing twelve months through June 30, 2022 being approximately US$115 million.
THE WHY? Matthew T. Farrell, Church & Dwight Chief Executive Officer, said, “Mighty Patch® represents a powerful addition to our existing Specialty Hair and Skin portfolio which includes Nair, Batiste, Viviscal, Flawless, and Toppik.
“Hero is located in New York City with a highly capable management team led by the 3 founders, Ju Rhyu, Dwight Lee, and Andrew Lee. In addition to cash, approximately 10% of the purchase price will be conveyed to the founders in restricted stock. The founders are expected to remain and continue to run the business while leveraging Church & Dwight’s scale and capabilities. We intend to maintain the NYC location and retain Hero employees. We are pleased to welcome them to the Church & Dwight family. Hero is nimble and asset light and should be an excellent fit at Church & Dwight.”