Hims acquires Eucalyptus

Hims & Hers Health has struck a definitive agreement to acquire Eucalyptus for up to $1.15 billion in a combination of cash and stock. This acquisition aims to bolster Hims & Hers' ambition of becoming a leading global consumer health platform by significantly expanding its international reach, particularly into markets such as Australia, Japan, the UK, Germany, and Canada.

The San Francisco-based digital health company will utilize this transaction to extend its operations beyond the United States, seeking to capitalize on Eucalyptus' established international presence. Under the terms of the deal, approximately $240 million will be settled in cash upon closing, with the remainder comprised of deferred payments over 18 months and additional earnouts attached to Eucalyptus achieving specific financial milestones by early 2029. Hims & Hers plans to fund the acquisition primarily through its existing cash reserves and anticipated cash flows from its U.S. operations.

Strategically, the acquisition is designed to integrate Eucalyptus' local expertise and infrastructure, amplifying Hims & Hers' existing business model on a global scale. Hims & Hers is committed to collaborating with regional experts to tailor services that meet specific local market needs and regulatory standards. Eucalyptus, which operates multiple consumer brands like Juniper and Pilot, serves an existing customer base of over 775,000 across several key regions. This move complements Hims & Hers' recent acquisitions, furthering its goal of creating a diversified international platform offering a spectrum of services from telehealth to pharmacy fulfillment.

Eucalyptus, with a revenue run-rate exceeding $450 million and demonstrating robust ARR growth in 2025, provides a substantial lift to Hims & Hers' international commercial and distribution strategy. The addition of Eucalyptus is also anticipated to enhance relationships with biotech and pharmaceutical companies seeking large-scale distribution partners. After the acquisition, current Eucalyptus CEO Tim Doyle will transition to a senior vice president role at Hims & Hers, focusing on international operations.

The transaction is subject to standard regulatory approvals and customary closing conditions, with an expected completion in mid-2026. This acquisition highlights a growing trend in the digital health sector where companies are seeking partnerships and mergers to expand their global footprint and streamline personalized healthcare delivery across different markets.