Church & Dwight to acquire Hero Mighty Patch brand
Church & Dwight is making moves in the beauty space.
The company announced a definitive agreement to acquire Hero’s acne care products, including the Hero Mighty Patch brand, for $630 million.
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“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 chief executive officer. “The Mighty Patch brand is a problem/solution product with a strong position in a growing category. The total acne treatment category in tracked channels is approximately $700 million. 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 toward younger consumers and consistently has a high level of brand loyalty and repeat purchase.”
Through this acquisition, Church & Dwight looks to expand Mighty Patch’s limited distribution by leveraging its retailer relationships in the United States, as well as grow the brand’s international footprint, the Ewing, N.J.-based company said.
“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 said. “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.”
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The transaction is subject to customary closing conditions and expected to close in the fourth quarter, the companies said.
“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. 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 and Dwight family,” said Ju Rhyu, co-founder and CEO of Hero.