Weight loss healthcare company Eucalyptus Health is being acquired by New York-listed health and wellness giant Hims & Hers Health in a deal valued at to US$1.15 billion (A$1.6 billion).
The deal marks a significant, high-value exit for the Sydney-based startup and its backers, providing Hims & Hers a significant foothold in Australia and Japan.
Charlie Gearside, a former art director at M&C Saatchi and Special, and Tim Doyle, the former head of marketing for Koala.com, are two of four co-founders set for a windfall from the sale. The other co-founders are Benny Kleist, and Alexey Mitko.
Doyle, who is CEO of Eucalyptus, is reportedly set to receive a windfall of around $160 million, although it is unclear what Gearside’s shareholding is.
Taking to LinkedIn this morning, Gearside said: “[It’s] hard to put into words how proud I am of the current and former Euc team, my co-founders and our unwavering investors.”
“Thank you to the patients and practitioners who have believed in patient-first healthcare. We have always admired Hims & Hers, and now the global stage beckons.”
Once the sale concludes, Doyle will lead the international arm of Hims & Hers and said that “we plan to build the best consumer health business in the world”.
“By joining Hims & Hers, we will help more people globally believe in the future of healthcare: simple, high-quality, personal, and designed to help prevent disease, instead of merely treating it,” said Doyle, co-founder and CEO of Eucalyptus.
“We’ve spent 7 years helping customers around the world find the care that fits them, and we believe today’s news will be part of accelerating the movement towards affordable healthcare for everyone that feels like a luxury. We’re thrilled to join Andrew and the whole Hims & Hers team and work toward this new future together.”
Hims & Hers plans to expand into Australia and Japan, and deepen its presence in the UK, Germany and Canada.
“Healthcare challenges are global, and so is the demand for simpler, transparent, and more personalised healthcare. But how that comes to life looks different for every region and every person. We’ve shown the difference that makes in the US, and the logical next step is working with more international experts to make that difference abroad,” said Andrew Dudum, founder and CEO of Hims & Hers.
“With Eucalyptus, we will not only enter new markets, we will expand our ability to serve customers globally, trusting local experts to be a key part of how we transform healthcare into a customer-first, personalised industry. We believe this puts us on the path to becoming the leading global consumer health platform, where everyone can access the best care for their needs, regardless of where they live.”
Eucalyptus operates several consumer-beloved brands across the world – including Juniper and Pilot – and has served more than 775,000 customers. It is also the first Australian telehealth business to receive accreditation from the Australian Council on Healthcare Standards (ACHS).
Eucalyptus currently has an annual revenue run-rate (“ARR”) north of US $450 million. The transaction will see approximately US $240 million payable in cash upon closing of the acquisition, with the remaining consideration consisting of guaranteed deferred payments over the 18 months following closing, and additional earnout payments tied to the attainment of specified financial targets through early 2029.
Hims & Hers has the option to settle the majority of deferred and earnout payments in cash or stock, at its election. The company is currently prepared to finance most of the transaction with existing cash on hand and future operating cash flows from its U.S. operations.
The acquisition is expected to close during the middle of calendar year 2026.
