Church & Dwight recently announced the acquisition of skincare brand Hero Cosmetics, creator of the Mighty Patch.
Ju Rhyu founded Hero Cosmetics in her home country of South Korea in 2017 when she discovered a cure-all for pimples. Hero Cosmetics began with only one product: The Mighty Patch, a round hydrocolloid bandage made to absorb moisture from cuts or blemishes. It is known in the skincare community as a highly effective way to manage blemishes and has become a bestseller in stores like Target and Ulta. Hero Cosmetics boasts that they sell one box of Mighty Patches every three seconds, thanks in large part to the fact that it has also been the number one skincare item on Amazon for almost a year. Hero's net sales over the past 12 months were approximately $115 million, though their products are only marketed in the U.S.
Church & Dwight is a titan of manufacturing known for producing OxiClean, Arm & Hammer, and Nair, and they see promise in humble Hero Cosmetics. Chief Executive Officer Matthew Farrell noted that the value of the acne treatment category in tracked channels is around $700 million, and the patch form of treatment has grown to 18% of the entire category. He sees promise in the brand's youthful consumers and repeat purchasers. He tells Happi that Hero is a "nimble and light asset" that will be an excellent fit in Church & Dwight's portfolio.
"The Mighty Patch brand is a problem/solution product with a strong position in a growing category," Farrell told Happi. "We are pleased to welcome them to the Church & Dwight family."
Rhyu will remain at the helm of Hero after the deal has closed, along with the two other founders, Dwight Lee and Andrew Lee. The headquarters will also stay in New York City, and the location will retain its employees. The deal, worth $630 million in cash and Church & Dwight restricted stock, is expected to close in the fourth quarter, subject to customary closing conditions.