Hims & Hers acquires Aussie healthcare player Eucalyptus in USD1.15b deal
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The news: Telehealth giant Hims & Hers has agreed to acquire heavily hyped Australian healthcare play Eucalyptus to power its global expansion.
The numbers: A statement on the acquisition said the transaction is valued at up to USD1.15 billion ($1.63 billion), with approximately USD240 million payable in cash upon closing of the acquisition.
The remaining consideration consists of guaranteed deferred payments over the 18 months following closing and additional earnout payments are tied to reaching financial milestones through early 2029.
The statement said that Eucalyptus currently has an annual revenue run-rate north of USD450 million.
The context: NYSE-listed Hims & Hers CEO Andrew Dudum said in a statement on Thursday that the company entered into a “definitive agreement to acquire Eucalyptus, an international leader in digital health, accelerating the company’s ability to bring access to high-quality, personalized care to more people across the world.”
Tim Doyle, current CEO of Eucalyptus, will become the SVP of International at Hims & Hers, overseeing the company’s international business. Dudum said Doyle and his team “are leaders in the industry because of their track record of efficiently entering new markets and as well as their customer-first approach, clinical rigor, simple digital experience, and local regulatory expertise.”
Eucalyptus, the company behind online weight loss brands Juniper and Pilot secured a $560 million valuation in 2023.
“Together with Hims & Hers’ other recent acquisitions, the addition of Eucalyptus will create a diversified international platform that expands the range of offerings available to customers around the world, from simple online pharmacy fulfillment to advanced, concierge-style service”, Dudum continued.
Eucalyptus shifted its strategy in recent months, retreating from an expansion into men’s longevity to focus instead on its weight loss business.
Eucalyptus started as a house of health brands with business arms that tackled hair loss, erectile dysfunction, fertility, skincare, menopause, and longevity. However, it since pivoted to effectively becoming a GLP-1 supplier.
Capital Brief in November reported that prominent Eucalyptus shareholder Blackbird had highlighted the startup as a notably strong performer in its portfolio at a closed-door briefing for investors, where it said the startup would soon achieve unicorn status.
Hims & Hers attracted scrutiny earlier this month after it was sued by Novo Nordisk for mass marketing less expensive, unapproved versions of Novo’s new Wegovy obesity pill and injection in the US. Hims & Hers has since pulled the products.
The sources: Hims & Hers, Hims & Hers
