Private equity firm Butterfly announced that it has acquired a majority stake in Orgain, an organic and clean nutrition products producer. Both companies are California-based.
Terms of the deal were not disclosed. Brand strategist Joshua Schall, founder of J. Schall consulting, told followers on his YouTube channel that Orgain discussed planned investments around the range of $50-$80 million. “So that kind of helps you guys with the size of the business, but there’s that variable to where we don’t know what percentage this entity bought Orgain,” adding that it’s difficult to say what the actual revenue base is.
The company will maintain its Irvine, CA headquarters.
Orgain was founded in 2009 by physician and cancer survivor Dr. Andrew Abraham, MD, to provide healthier and more convenient nutrition options to patients. Abraham will remain on as CEO.
The story behind the brand
“This is a perfect example of a founder’s story, the ‘why’ behind a founder, being integrated into the ‘why’ behind the brand’s story. This has continued to be the driving force behind the brand. A lot of propositions around Orgain is still based around that original story,” said Schall.
The Company launched in 2009 with an organic ready-to-drink nutrition shake and since has developed a broad portfolio that includes formats that are both plant-based and grass-fed dairy-based products. Products include protein powders, shakes and bars with a focus on organic, protein-rich, clean ingredients.
A name to know
The acquisition will allow Orgain to scale its purpose-driven brand and expand its reach. “I think Orgain is going to be focusing on increasing their brand exposure in the market. If you’re not aware of that name, you will soon be aware of that name. I think they will utilize those extra resources for new product innovation and global distribution,” said Schall.
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.
Butterfly co-founder Dustin Beck commented: “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.”
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 acted as legal advisors to Butterfly and Orgain, respectively. Piper Jaffray acted as financial advisor to Orgain.