Church & Dwight, the owner of brands such as Arm & Hammer and OxiClean, has agreed to acquire the Hero Mighty Patch brand (Hero) and other acne treatment products for US$630m.
Mighty Patch is the number two brand in the acne category in the US and the number one acne patch brand. Hero’s net sales during the 12 months to 30 June 2022 were approximately US$115m.
The products are currently only marketed in the US. However, Church & Dwight stated that it expects to expand Mighty Patch’s limited distribution by leveraging its US retailer relationships and international footprint.
“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 Chief Executive.
“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 $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.”
Ju Rhyu, co-founder of Hero, added: “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.”
The transaction is expected to close in the fourth quarter.
