Church & Dwight buys Mighty Patch maker Hero

By Julia Wray | Published: 7-Sep-2022

The Nair owner will pay $630m for the US' best-selling acne patch brand

FMCG conglomerate Church & Dwight is expanding into anti-blemish solutions by acquiring Hero, the company behind the US’ top-selling acne patch brand Mighty Patch.

The Nair owner’s US$630m deal, comprising cash and Church & Dwight restricted stock, is expected to close in the fourth quarter of 2022.

Spurred by the acne patch’s status as the fastest growing form of acne treatment, according to Church & Dwight, Hero enjoyed net sales for the 12 months to 30 June 2022 of approximately $115m.

This is despite the fact that the products are marketed solely in the US.

“Mighty Patch represents a powerful addition to our existing Specialty Hair and Skin portfolio, which includes Nair, Batiste, Viviscal, Flawless, and Toppik,” said Matthew T Farrell, Church & Dwight’s CEO.

“The Mighty Patch brand is a problem [and] solution product with a strong position in a growing category.

“The total acne treatment category in tracked channels is approximately $700m. The patch form has grown to 18% of the acne treatment category as more consumers transition away from lotions and ointments to a patch solution.

“The brand skews towards younger consumers and consistently has a high level of brand loyalty and repeat purchase.”

“Hero is located in New York City with a highly capable management team led by the three founders, Ju Rhyu, Dwight Lee and Andrew Lee,” Farrell continued.

“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.

“Hero is nimble and asset light and should be an excellent fit at Church & Dwight.”

“We are excited to combine a brand that people love with Church & Dwight’s expertise and scale to continue driving success and growth in the market,” added Rhyu, co-founder and CEO of Hero.

“Our cultures are a strong complement to one another and we are ready to take Hero into the next chapter and beyond as part of the Church & Dwight family.”

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