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Nestle Health Science to acquire Orgain from Butterfly

Butterfly has agreed to sell a majority stake in Orgain, a plant-based functional nutrition platform, to Nestle Health Science.

Butterfly has agreed to sell a majority stake in Orgain, an Irvine, California-based plant-based functional nutrition platform, to Nestle Health Science. No financial terms were disclosed. When the deal closes, Orgain’s existing backers Ontario Teachers’ Pension Plan and DCP Capital will maintain minority ownership positions.

PRESS RELEASE

LOS ANGELES – Butterfly, a Los Angeles-based private equity firm specializing in the food sector, today announced that Nestlé Health Science has agreed to acquire a majority stake in its portfolio company Orgain, the U.S.’ leading plant-based functional nutrition platform. Butterfly and Dr. Andrew Abraham, Orgain’s Founder and CEO, will retain significant minority ownership positions in the company. Dr. Abraham will continue to lead the company as CEO. Terms of the deal were not disclosed.

Orgain was founded in 2009 in California by Dr. Abraham, an integrative medicine specialist and cancer survivor. He developed the company’s protein-based shakes, powders and snacks based on his belief that everyone deserves access to good, clean nutrition. Today, Orgain’s portfolio of products includes the nation’s best-selling plant-based and organic protein powder, protein shake and nutritional shake, among many other products.
Butterfly, alongside investors Ontario Teachers’ Pension Plan Board (Ontario Teachers’) and DCP Capital, acquired a majority stake in Orgain in November 2019. Ontario Teachers’ and DCP Capital will also maintain minority ownership positions in the company.

“Orgain was a mission before it became a company,” said Orgain Founder and CEO Dr. Abraham. “Today, in partnering with Nestlé Health Science, we take a giant leap forward in pursuing that mission of providing accessible, healthy nutrition for all. Nestlé Health Science shares that mission and will help us to get better, cleaner nutrition products into the hands of more consumers than I ever imagined possible when I founded this company twelve years ago.”

“We could not be prouder of what the Orgain team has accomplished over the last two years – it’s been an absolute privilege to work alongside them,” said Butterfly Co-Founder Adam Waglay. “We are confident that Orgain is still in the early innings of achieving its ultimate potential and are thrilled that we have the opportunity to continue to be a part of that journey together with Nestlé Health Science.”

Butterfly Co-Founder Dustin Beck added: “It’s been inspiring to watch Andrew help pioneer the clean nutrition movement. He’s a visionary in the space and his drive and passion, along with that of the entire Orgain organization, have created a truly remarkable business. We’re excited to see what they will be able to accomplish in this next chapter of the clean nutrition movement alongside the perfect partner.”

Kirkland & Ellis LLP and Giannuzzi Lewendon LLP acted as legal advisors to Orgain. BofA Securities, Goldman Sachs & Co. LLC and Mally Collective acted as financial advisors to Orgain.

About Butterfly
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.