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.”