Church & Dwight will acquire the Hero Mighty Patch brand and acne treatment products in a $630 million cash and stock deal.
Founded in 2017 with a single product selling on Amazon, Church & Dwight said Mighty Patch is the No. 2 brand in the acne category in the United States and the No. 1 patch brand in acne, with net sales for the May 2021 through June 2022 period around $115 million. In addition to Amazon, Hero’s products can also be found in Target, Ulta Beauty, CVS, and other retailers, and Church & Dwight seeks to further expand Hero’s distribution by leveraging its own U.S. retailer relationships and international footprint.
Citing it as a problem/solution product, Matthew Farrell, Church & Dwight CEO, said Mighty Patch will add to the company’s existing specialty hair and skin portfolio, including the Nair, Batiste, and Viviscal brands, and represents its 15th power brand.
[See also: Surabhi Pokhriyal Named Chief Digital Growth Officer at Church & Dwight]
"The total acne treatment category in tracked channels is approximately $700 million,” noted Farrell. “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.”
The transaction is expected to close in the fourth quarter. The New York-based Hero was founded by Ju Rhyu, Dwight Lee, and Andrew Lee, all of whom are expected to remain and continue to run the business, said Farrell. The New York location and Hero employees will also be retained.
“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,” said Rhyu in a statement. “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.”
Founded in 1846 Church & Dwight includes such brands as Arm & Hammer, Trojan, Oxiclean, and Spinbrush in its portfolio, with 15 brands representing around 85% of the company’s product sales.