Nestlé Health Sciences has purchased a controlling stake in Orgain, a plant-based organic protein powder, beverage and nutrition brand started by physician and cancer survivor Dr. Andrew Abraham.
The deal, announced today, took place after a competitive process that lasted several months. Sources indicated that the price of the 13-year-old company was well in excess of $1 billion. Bloomberg news reported that Orgain’s majority stakeholder, Los Angeles-based private equity firm Butterfly, had been seeking around $2 billion for the company.
As part of the deal, Abraham will remain CEO for at least the next two years, and he and other shareholders – Butterfly, Ontario Teachers’ Pension Plan, and DCP Capital – will also retain minority stakes in Orgain. Ontario Teachers’ is also a limited partner in Butterfly.
“I will absolutely remain on as CEO of Orgain and will retain my significant minority stake in the company,” Abraham said today in a press release announcing the deal. “It’s an incredibly exciting time for us as we will now be able to truly expand globally, to enter into the world of medical nutrition, and to enter new categories and markets with the resources and commitment of Nestlé Health Sciences to only make us better. I’ve been incredibly humbled by the journey thus far, and for our Orgain family I know the best is yet to come.”
Nestlé Health Sciences has been on the purchase end of several other brands in the food and nutrition area in the past two years, acquiring collagen brand Vital Proteins in June 2020, and electrolyte tablet maker Nuun and supplement company Bountiful Company last summer.
Orgain has grown through a variety of products and channels in recent years, but its powder business remains its largest source of revenue, both in-store and via direct-to-consumer channels. Earlier this year the company stepped up its marketing game, launching its first national brand campaign with commercials across a variety of networks.
The deal was the first sale for Butterfly Equity, which bought a controlling stake in Orgain a little more than two 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.”
The deal was led by Orgain advisors the Mally Collective along with Goldman Sachs and Bank of America Securities; Giannuzzi Lewendon and Kirland & Ellis also advised Orgain.