Los Angeles-based private equity firm Butterfly has agreed to acquire a majority stake in Irvine, California-based Orgain, a producer of organic and clean nutrition products. No financial terms were disclosed. Ontario Teachers’ Pension Plan, a limited partner of Butterfly, will also be a new minority investor in Orgain. Kirkland & Ellis LLP and The Giannuzzi Group LLP provided legal advice to Butterfly and Orgain, respectively. And, Piper Jaffray served as financial adviser to Orgain.
LOS ANGELES–(BUSINESS WIRE)–Butterfly, a Los Angeles-based private equity firm specializing in the food sector, today announced that it has signed a definitive agreement to acquire a majority stake in Orgain, Inc. (“Orgain” or the “Company”).
Based in Irvine, CA, Orgain is a leading producer of high-quality, great-tasting, organic and clean nutrition products. Orgain was founded in 2009 by physician and cancer survivor Dr. Andrew Abraham, M.D., to provide healthier and more convenient nutrition options to his patients. Today, it serves millions of individuals seeking to lead healthier, more vibrant lives including professional athletes, wellness enthusiasts, cancer patients and everyone in between. The Company launched with the industry’s first organic ready-to-drink nutrition shake in 2009 and since has developed a broad portfolio of category-leading products spanning across protein powders, shakes and bars with a focus on organic, protein-rich, clean ingredients. Orgain is unique in its success across product formats and within both plant-based and grass-fed dairy-based offerings.
Orgain is Butterfly’s fifth investment within its “seed to fork” approach to investing in food across agriculture, aquaculture, food and beverage products, food distribution and foodservice. Dr. Andrew Abraham will retain a significant minority ownership position in the business and will continue in the role of Chief Executive Officer going forward. Ontario Teachers’ Pension Plan, a Limited Partner of Butterfly, will also be a new minority investor in Orgain alongside Butterfly and Dr. Abraham.
“In spending time with the Butterfly team it was apparent that they shared our values and understood our mission to positively impact consumers across the world with our clean and delicious nutrition product. We are excited about this next phase of growth for our brand, the ability to expand globally and the opportunity to inspire so many more healthy vibrant lives,” said Andrew Abraham, Founder and CEO of Orgain.
The partnership will enable Orgain to scale its purpose-driven brand and expand its reach and positive impact. In particular, it will allow for an increased focus to be placed on expanding consumer awareness, product innovation and global distribution.
“Having been in close touch with Andrew for years, we continue to be impressed year after year by the loyal following and trajectory of the business he’s built,” said Butterfly Co-Founder Adam Waglay. “Orgain’s success is driven by the authenticity, purpose and passion that Andrew brings to everything he does.”
Butterfly Co-Founder Dustin Beck added: “Orgain has built an industry-leading platform of clean, nutritious products that have only scratched the surface of their potential. It has already had a massive impact in hospitals, locker rooms and homes across the world and we’re excited to help amplify its reach.”
Kirkland & Ellis LLP and The Giannuzzi Group, LLP acted as legal advisors to Butterfly and Orgain, respectively. Piper Jaffray acted as financial advisor to Orgain. This transaction is subject to customary closing conditions.
Orgain was created by Dr. Andrew Abraham to save his own life during his battle with cancer, and now it’s made to serve the diverse needs of millions more. Orgain’s primary purpose is to make delicious clean and organic nutritional products to help people lead healthy, vibrant lives. Its products include meal replacement shakes, protein powders and snack bars for adults and kids. Orgain uses only the highest quality ingredients, never at the cost of taste and texture. Most Orgain products are Certified Organic and all are soy free, gluten free, non-GMO and free of artificial colors, flavors and preservatives. To learn more about Orgain, and Dr. Abraham’s fascinating story and purpose, or to shop products and browse recipes, visit www.orgain.com.
Butterfly Equity (“Butterfly”) is a Los Angeles, California based private equity firm specializing in the food sector, spanning the entire food value chain from “seed to fork” via four target verticals: agriculture & aquaculture, food & beverage products, food distribution and foodservice. Butterfly aims to generate attractive investment returns through deep industry specialization, a unique approach to sourcing transactions, and leveraging an operations-focused and technology-driven approach to value creation. For additional information about Butterfly, please visit its website at www.butterflyequity.com.
About Ontario Teachers’ Pension Plan:
The Ontario Teachers’ Pension Plan (Ontario Teachers’) is Canada’s largest single-profession pension plan, with $201.4 billion in net assets at June 30, 2019. It holds a diverse global portfolio of assets, approximately 80% of which is managed in-house, and has earned an annual total-fund net return of 9.7% since the plan’s founding in 1990 (all figures as at Dec. 31, 2018 unless noted). Ontario Teachers’ is an independent organization headquartered in Toronto. Its Asia-Pacific region office is located in Hong Kong and in Europe, Middle East & Africa region office is in London. The defined-benefit plan, which is fully funded, invests and administers the pensions of the province of Ontario’s 327,000 active and retired teachers. For more information, visit otpp.com and follow us on Twitter @OtppInfo.